HI
Hawaii Senate Bill SB1100

Hawaii 2024 Regular Session

Hawaii Senate Bill SB1100

Introduced
1/20/23  
Refer
1/27/23  
Introduced
1/20/23  

Caption

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

Impact

If enacted, this constitutional amendment would affect various state laws by introducing a framework in which counties can autonomously finance infrastructure projects. It permits the issuance of tax increment bonds which, managed correctly, could catalyze economic development and urban renewal within local communities. However, the reliance on future property tax revenues poses risks, as fluctuations in property values and tax rates could impact the repayment of these bonds. As a result, local governments would require careful planning and fiscal responsibility to ensure the sustainability of projects funded in this manner.

Summary

SB1100 proposes amendments to Article VII, Section 12 of the Hawaii Constitution, allowing counties the authority to issue tax increment bonds. The primary objective of this bill is to enable local governments to raise funds for public improvements through bonds secured by future property tax revenues generated within designated tax increment districts. This funding mechanism is anticipated to be a strategic tool for enhancing infrastructure and supporting development projects that would otherwise be challenging to finance through traditional means.

Contention

The proposal has sparked discussions about the balance of control between state and local governments regarding financial autonomy. Proponents argue that allowing counties to issue tax increment bonds will empower local entities to address specific infrastructural needs more effectively. Critics, however, express concerns about the potential for mismanagement and the long-term implications of increased local debt levels. There is also apprehension that this could lead to inequitable funding strategies, where certain communities benefit disproportionately while others suffer from inadequate infrastructure investment.

Latest SB1100 Activity

Companion Bills

HI HB1457

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

HI SB1100

Carry Over 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 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 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.