SB1333 would extend and broaden the authority for certain Hawaii counties to levy county surcharges on state tax revenues used for regional infrastructure. Under current law, counties with populations of 500,000 or less may impose these surcharges for transit-related capital costs and, in some cases, limited housing-related infrastructure. The bill extends the collection period for those surcharges from December 31, 2030 to December 31, 2047, giving counties a longer window to fund long-term capital programs and debt service.
The measure also expands the permitted uses of surcharge revenue for smaller counties to include both transportation and housing infrastructure. It revises the definition of housing infrastructure costs to cover pedestrian facilities near schools, water and sewer systems, drainage, waste treatment, and electrical and communications improvements tied to neighborhood redevelopment. In addition, the bill authorizes counties to cost-share housing infrastructure projects with private developers or other public entities, which could make it easier to finance infrastructure needed to support housing development.
Impact
SB1333 would amend Hawaii Revised Statutes sections 46-16.8, 237-8.6, and 238-2.6, as well as related provisions in Act 247, to extend the sunset date for county surcharge authority and broaden how surcharge proceeds may be used. The practical effect is to preserve and expand a local revenue tool for counties with populations of 500,000 or less, allowing them to continue collecting the surcharge through 2047 and to direct funds toward both transportation systems and housing-related infrastructure. Counties that already adopted surcharge ordinances would also have a later deadline to amend their ordinances to change authorized uses.
Sentiment
The available voting history suggests generally favorable sentiment toward the bill. The Senate Housing Committee passed it unanimously, 3-0, with amendments, and the bill advanced on second reading and was referred onward to Ways and Means. The bill text and report description frame the measure as a response to infrastructure funding needs, housing cost pressures, and the need for more reliable long-term county revenue.
Contention
The main policy issue is the scope of permitted uses for county surcharge revenues. The bill shifts from a narrower focus on transit and transportation infrastructure to a broader authorization that includes housing infrastructure, which may raise questions about how much of the surcharge should be dedicated to transportation versus housing. Another point of potential concern is the extension of the surcharge authority to 2047, which effectively prolongs a tax mechanism that was previously scheduled to end in 2030. The bill also introduces cost-sharing with private or public developers, which could prompt discussion about who should bear infrastructure costs and whether surcharge revenues should subsidize private development.