HI
Hawaii Senate Bill SB3051

Hawaii 2024 Regular Session

Hawaii Senate Bill SB3051

Introduced
1/24/24  
Refer
1/26/24  
Introduced
1/24/24  

Caption

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.

Impact

By enabling counties to use tax increment bonds, SB3051 facilitates a new mechanism for local governments to raise capital for essential public works and improvements, such as infrastructure and community development projects. This financial flexibility can promote economic growth and revitalization efforts within specific areas, leading to enhanced public amenities and services. Moreover, excluding these bonds from the debt limit calculations means that counties could potentially take on more projects than otherwise possible under existing funding restrictions, thereby increasing local government autonomy in financial decision-making.

Summary

SB3051 proposes amendments to Article VII, Sections 12 and 13, of the Hawaii Constitution, specifically allowing the legislature to authorize counties to issue tax increment bonds. This type of bond is defined as being payable solely from real property taxes collected on the increase in assessed value within a designated tax increment district. Therefore, the amendment seeks to provide counties with more financial tools to fund public improvements without the constraints of state debt limitations. Additionally, the bill aims to exclude these tax increment bonds from the calculation of a county's funded debt, thereby creating a more favorable financial environment for local governments to finance necessary projects.

Contention

While the bill is designed to aid counties in extending financial opportunities, it may also lead to concerns about the long-term fiscal responsibility of local governments. Critics may argue that granting counties the ability to issue bonds without them counting towards their funded debt could encourage excessive borrowing or mismanagement of resources. Additionally, the reliance on property taxes as a funding mechanism for these bonds could disproportionately impact residents, especially those in districts with fluctuating property values. Consequently, the discussions surrounding SB3051 may raise questions about the balance between local autonomy and fiscal sustainability.

Latest SB3051 Activity

Companion Bills

HI HB2362

Same As 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.

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 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 SB3053

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 HB2085

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 HB2362

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.