HI
Hawaii House Bill HB1457

Hawaii 2023 Regular Session

Hawaii House Bill HB1457

Introduced
1/25/23  

Caption

Proposing Amendments To Article Vii, Section 12, Of The Hawaii Constitution To Authorize The Counties To Issue Tax Increment Bonds.

Impact

By granting counties the authority to issue tax increment bonds, HB1457 would empower local governments to finance infrastructure projects that might otherwise struggle to obtain funding due to higher initial costs. Essentially, this form of financing allows counties to capture the increase in property tax revenues that result from the enhancements made in designated areas. As a result, communities can potentially see upgraded facilities and services, leading to an improved quality of life for residents. This could notably impact areas such as transportation, housing, and public amenities.

Summary

House Bill 1457 proposes amendments to Article VII, Section 12 of the Hawaii Constitution to allow counties to issue tax increment bonds. Tax increment financing (TIF) is a fiscal policy that allows local governments to fund public infrastructure improvements through future property tax revenue generated in a designated tax increment district. This legislative change aims to provide counties with a more flexible financial tool to stimulate local economic growth and improve public services by enabling them to generate revenue for vital public projects.

Contention

There may be points of contention regarding the bill, particularly concerning the implications of TIF financing on existing resources and the potential for over-reliance on future tax revenues that may not materialize as projected. Critics may argue that this could lead to financial uncertainties or detrimental impacts on other local services if tax revenues do not increase as anticipated. Furthermore, there may be discussions surrounding equity, as not all communities would benefit equally from such financing mechanisms, raising concerns about broader implications for socioeconomic disparities in the state.

Latest HB1457 Activity

Companion Bills

HI SB1100

Same As Proposing Amendments To Article Vii, Section 12, Of The Hawaii Constitution To Authorize The Counties To Issue Tax Increment Bonds.

Similar Bills

HI SB1295

Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.

HI SB3008

Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.

HI HB997

Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.

HI HB997

Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.

HI HB1457

Proposing Amendments To Article Vii, Section 12, Of The Hawaii Constitution To Authorize The Counties To Issue Tax Increment Bonds.

HI SB1100

Proposing Amendments To Article Vii, Section 12, Of The Hawaii Constitution To Authorize The Counties To Issue Tax Increment Bonds.

HI SB1100

Proposing Amendments To Article Vii, Section 12, Of The Hawaii Constitution To Authorize The Counties To Issue Tax Increment Bonds.

HI SB1295

Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.