HONOLULU — The Hawaii Supreme Court has agreed to hear a petition from the state’s four counties that are seeking to quash a ballot question giving the state Legislature the power to tax investment real estate to fund education.
The state’s highest court is scheduled to hear arguments on Oct. 18, days before early walk-in voting sites for the November election open throughout the state.
Voters are poised to be asked, “Shall the legislature be authorized to establish, as provided by law, a surcharge on investment real property to be used to support public education?”
The question would allow for the state Constitution to be amended, giving the state power to tax investment property. Only counties have the power to levy property taxes under current state law.
A lower court judge rejected the counties’ request last month for a preliminary injunction against the ballot question. Attorneys for the counties then filed a “petition for extraordinary writ” with the state Supreme Court.
County officials claim the ballot question is too vague, does not clearly tell voters about the additional taxing authority, nor define investment property.
“The counties filed this petition for extraordinary writ so that we could argue the merits of our case before the state’s highest court, and we are pleased that chance has now been afforded to us,” Honolulu Corporation Counsel Donna Leong said. “Hawaii residents should know exactly what they are voting for and the counties believe that’s clearly not the case since the question that will appear on ballots proposes a new tax, but does not mention the word ‘tax.’”
The Hawaii State Teachers Association has backed the ballot question, arguing it would provide much-needed funding for schools and teachers’ salaries.
“The counties lost before and they are going to lose again,” said Corey Rosenlee, the association’s president. “This is not some measure that just popped up. This is a measure that was passed by every single legislator except one. It went through multiple committees. We strongly believe that the county is wasting everyone’s time. They are wasting taxpayers’ money to do this.”
The issue is heating up and the Affordable Hawaii Coalition has been leading the charge against the amendment.
Coalition members, along with Hawaii County Mayor Harry Kim and Honolulu Mayor Kirk Caldwell, gathered Thursday to highlight the negative impact the constitutional amendment will have on Hawaii’s working families, including increased real property taxes for local property owners, higher rents for residents and businesses, and a higher cost of living.
They say the proposed constitutional amendment will increase real property taxes for farmers who give Hawaii residents locally sourced food, and small businesses struggling to get by in a state ranked as one of the worst in the nation to do business in.
“The chamber represents more than 2,000 member companies and their 200,000 employees,” said Sherry Menor-McNamara, member of the Affordable Hawaii Coalition and president and CEO of the Chamber of Commerce Hawaii. “Ninety-eight percent of our members are small businesses, and we believe this ballot initiative will raise the cost of living for businesses and their employees.”
The Kauai Chamber of Commerce has also come out against the amendment.
Teachers rallied in front of Wilcox Elementary School on Wednesday asking the public to support schools, teachers and keiki by voting for the amendment.
Today, volunteers including public school parents’ groups, children’s advocates and teachers are canvassing Honolulu neighborhoods campaigning for the constitutional amendment.
“They will be using their grassroots ‘people power’ to combat the unfair and inaccurate criticisms made by the Chamber of Commerce Hawaii, luxury developers and Realtors, who are bankrolling a campaign to kill an amendment that would generate a new revenue stream to improve Hawaii’s chronically underfunded public schools,” said a press release.
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The Garden Island and Associated Press contributed to this report.
