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SB 2464

PROPOSING AMENDMENTS TO ARTICLES VIII AND X OF THE CONSTITUTION OF THE STATE OF HAWAII TO AUTHORIZE THE LEGISLATURE TO ESTABLISH A SURCHARGE ON RESIDENTIAL INVESTMENT PROPERTY TO INCREASE FUNDING FOR PUBLIC EDUCATION.

2026 Regular Session Introduced by Karl Rhoads and 1 co-sponsor

Hawaii constitutional amendment enabling legislature to tax residential investment properties specifically to fund public education, requiring voter approval.

Referred to EIG/EDU, WAM/JDC.
#constitutionalamendment #publiceducation #residentialinvestmentpropertysurcharge(conam)
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WeVote Research Nonpartisan
Bill Summary · SB 2464

Legislative bill overview

SB 2464 proposes amending Hawaii's state constitution to allow the legislature to impose a surcharge specifically on residential investment properties, with revenue directed to public education funding. This would require voter approval through a constitutional amendment referendum, as it modifies the state's fundamental governing document.

Why is this important

Hawaii faces chronic public education funding shortfalls, and this bill presents a targeted revenue mechanism that could generate substantial new dollars without raising property taxes on owner-occupied homes. The proposal directly addresses whether non-primary residences should bear additional tax burdens to support schools, a contentious issue in states with significant vacation rental and investor-owned housing markets.

Potential points of contention

  • Investment property definition disputes: Disagreement over how "residential investment property" is defined and whether it adequately captures short-term rentals, corporate-owned units, and foreign investors versus local landlords
  • Economic competitiveness concerns: Business groups and property owners may argue the surcharge discourages real estate investment in Hawaii, potentially reducing housing supply and construction jobs
  • Effectiveness and earmarking: Questions about whether dedicated education funding actually improves outcomes versus whether the money simply replaces general revenues that could be redirected elsewhere, plus enforcement challenges
  • Constitutional threshold: Requires voter approval, making passage dependent on public referendum rather than legislative action alone

Compiled from official sources — confirm details with the bill’s official record.

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