Senate Passes Amendment to Support Schools

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On Tuesday, April 24, 2018, the Hawai‘i State Senate voted 23-1 to approve a bill that proposes a constitutional amendment to give voters the opportunity to decide if the state should establish a surcharge on investment property to advance the state’s goal of providing quality education for the children of Hawai‘i.

SB2922 calls for a Constitutional amendment to authorize the Legislature to establish a surcharge on investment real property to support public education.  Currently, the state Constitution authorizes the Counties the capacity to levy property taxes. If the Constitutional amendment is ultimately approved by voters, Hawai‘i would join 49 other states in using property taxes to finance public education.

Constitutional amendments are not required to be approved by the Governor, therefore the question that now proceeds to the ballot in November will be as follows: “Shall the legislature be authorized to establish, as provided by law, a surcharge on investment real property to be used to support public education?”

Sen. Michelle Kidani (Dist. 18 – Mililani Town, portion of Waipi‘o Gentry, Waikele, Village Park, Royal Kunia), Chair of the Senate Committee on Education who introduced the bill on behalf of the Hawai‘i State Teachers Association, explained that the language within the measure had been simplified through amendments to move the state forward in order to provide full funding for Hawai‘i’s public schools.


“The public should be assured that the Senate has no intention of taxing the homes you live in, that is homes for which resident owners receive a homeowner’s exemption,” said Sen. Kidani. “Nor does the Senate intend to approve any surcharge on investment properties valued less than $1 million. Further, no consideration has ever been given to a surcharge on commercial properties. The intent is and always has been to focus on residential properties.”

Should voters pass the Constitutional amendment, the Legislature will have to revisit the issue to determine the parameters of the tax surcharge.


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