HB 1457: RELATING TO TAX INCREMENT FINANCING.

A BILL FOR AN ACT

RELATING TO TAX INCREMENT FINANCING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 46-103, Hawaii Revised Statutes, is amended to read as follows:

     "§46-103  Establishment of tax increment district.  (a)  Any county council may provide for tax increment financing by approving a tax increment financing plan and adopting an ordinance establishing the tax increment district.  The ordinance shall:

     (1)  Describe the boundaries of the tax increment district;

     (2)  Provide for the date of commencement of the tax increment district and date of termination of the district;

     (3)  Provide for the establishment of a tax increment fund for the district; and

     (4)  Provide for [such] other matters deemed to be pertinent and desirable for tax increment financing and not inconsistent with any relevant redevelopment plan, community development plan, high technology park plan, or telecommunication development plan.

     (b)  The department of Hawaiian home lands may apply to a county for tax increment financing under subsection (a)."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

DHHL; Counties; Tax Increment Financing

Description:

Authorizes the Department of Hawaiian Home Lands to apply to the counties for tax increment financing.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to tax increment financing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 46-103, Hawaii Revised Statutes, is amended to read as follows:

     "§46-103  Establishment of tax increment district.  (a)  Any county council may provide for tax increment financing by approving a tax increment financing plan and adopting an ordinance establishing the tax increment district.  The ordinance shall:

     (1)  Describe the boundaries of the tax increment district;

     (2)  Provide for the date of commencement of the tax increment district and date of termination of the district;

     (3)  Provide for the establishment of a tax increment fund for the district; and

     (4)  Provide for such other matters deemed to be pertinent and desirable for tax increment financing and not inconsistent with any relevant redevelopment plan, community development plan, high technology park plan, or telecommunication development plan.

     (b)  The Hawaiian homes commission may designate a tax increment district under subsection (a).  If the commission designates a district as a tax increment district, then the county council shall adopt a tax increment financing plan and ordinance establishing the tax increment district according to the boundaries determined by the Hawaiian homes commission and pursuant to this section."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

DHHL; Counties; Tax Increment Financing

Description:

Authorizes the Hawaiian Homes Commission to designate tax increment districts that may utilize tax increment financing.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  628

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1457

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1457 entitled:

"A BILL FOR AN ACT RELATING TO TAX INCREMENT FINANCING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Authorize the Hawaiian Homes Commission to designate tax increment districts that may utilize tax increment financing; and

     (2)  Require a county council to adopt a tax increment financing plan and ordinance establishing the tax increment district.

     Your Committee received comments on this measure from the Department of the Attorney General; Department of Hawaiian Home Lands; and Tax Foundation of Hawaii.

     Your Committee finds that the counties have the exclusive authority to exercise all functions, powers, and duties relating to the taxation of real property under the Hawaii State Constitution.  Your Committee further finds that the Department of the Attorney General testified that this measure may interfere with the counties' assessment and collection of tax increments, potentially infringing on their exclusive constitutional authority over real property taxation.

     Accordingly, your Committee has amended this measure by:

     (1)  Deleting language that would have authorized the Hawaiian Homes Commission to designate tax increment districts and required the county council to adopt a tax increment financing plan and ordinance establishing the tax increment district;

     (2)  Authorizing the Department of Hawaiian Home Lands to apply to the counties for tax increment financing;

     (3)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider the concerns raised by the Department of the Attorney General as it relates to real property taxation.

     As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1457, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1457, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,