HI SB1426

Requires the City and County of Honolulu to return a specified amount of revenues derived from the county surcharge on state general excise and use taxes to the State.

Authorizes the issuance of general obligation bonds to reimburse the City and County of Honolulu for the returned revenues, with bond proceeds deposited in escrow before any county funds are transferred.

Extends the sunset date of the county surcharge on general excise and use taxes from December 31, 2022 to December 31, 2024, continuing the surcharge for two additional years.

Requires the State and City and County of Honolulu to enter into a memorandum of understanding to coordinate the transfer of revenues and bond proceeds.

Amends Hawaii Revised Statutes section 248-2.6 to allow the director of finance to make county surcharge payments from sources other than the state treasury special accounts, including general obligation bond proceeds.