Constitutional amendment seeks increased taxes for public schools

A plan to ask voters whether the state should create a dedicated funding stream for public schools by taxing investment homes and visitor accommodations is back in play after nearly a month of inaction in the House.

The teachers union-backed proposal seeks a constitutional amendment to allow the state to establish an unspecified “surcharge” on investment homes valued at $1 million or more, and on visitor accommodations to generate extra revenue for public education. No tax rates are proposed in the current draft of the bill.

A Senate version of the bill moved smoothly through that chamber, where it was passed last month and sent over to the House for consideration.

Until this week the House had not scheduled Senate Bill 2922 for a hearing by the Finance Committee to keep the bill moving forward. The Finance Committee also did not grant an initial hearing for a House version of the bill, House Bill 2608.

The House this week revived the bill by referring it instead to the Education Committee, which will hold a public hearing at 3 p.m. today.

“If this proposal passes, it gives the community the opportunity to determine whether or not we are going to be serious about increasing our attention toward helping our schools,” said House Education Chairman Justin Woodson (D, Kahului-Wailuku-Puunene).

The bill calls for a constitutional amendment because the state Constitution gives counties the exclusive power to levy property taxes. If the proposed amendment were approved by voters, the Legislature would be authorized to tax residential investment properties — homes where the homeowner does not qualify for a homeowner’s exemption — and visitor accommodations to benefit public education.

Under a similar measure that stalled last year, five property tax rates based on a home’s value were considered along with a daily surcharge of $3 to $5 on visitor accommodations.

Proceeds from the taxes would go toward broad categories, including “recruitment and retention of teachers, public preschools, reduction in class sizes, special education programming, career and technical education, art, music, Hawaiian studies, Hawaiian language instruction and after-school programs.”

Senate Vice President Michelle Kidani, chairwoman of the Senate Education Committee, said she’s appreciative the bill seems to have new life. An advocate for increasing funding for public schools, Kidani said Hawaii, which is the only statewide school district in the country, is the only state that does not use property taxes to finance education.

“I’m excited that the bill is not dead and that we’re going to have another chance at the bill,” Kidani (D, Mili­lani-Waikele-Kunia) said.