STAND. COM. REP. NO. 2526

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2054

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

 

Sir:

 

     Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2054 entitled:

 

"A BILL FOR AN ACT RELATING TO INFRASTRUCTURE IMPROVEMENT DISTRICTS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Establish an annual surcharge on property taxes on parcels within an infrastructure improvement district that are sold or developed after an appropriation is made to improve the infrastructure;

 

     (2)  Authorize the counties to retain a portion of the surcharge for administrative expenses; and

 

     (3)  Exempt from the surcharge parcels that do not change ownership.

 

     Your Committee received testimony in opposition to this measure from one member of the Maui County Council and Hawaii Association of Realtors.  Your Committee received comments on this measure from the Department of Taxation, Office of Planning, and Tax Foundation of Hawaii.

 

     Your Committee finds that insufficient infrastructure is a contributing factor to the lack of affordable housing in Hawaii.  Currently, developers are required to fund necessary infrastructure improvements, which has led to delays in construction and the development of expensive housing.  Your Committee further finds that there are jurisdictions that fund infrastructure improvements through real property taxes.  This measure will authorize the Legislature, upon ratification of a constitutional amendment, to establish a surcharge on taxation of certain property within an infrastructure improvement district to offset some cost for developers to provide more housing in the State.

 

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2054, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2054, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

 

 

 

________________________________

GLENN WAKAI, Chair