Report Title:

Conveyance Tax; Rental Housing Trust Fund

Description:

Increases permanently the percentage of the conveyance tax paid into the rental housing trust fund from the current allocation of thirty per cent to sixty-five per cent.

THE SENATE	S.B. NO.	729
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

relating to rental housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that providing affordable rental housing to Hawaii's low income residents is a continuing challenge and that current economic conditions make this goal even more difficult to meet.

     Act 100, Session Laws of Hawaii 2006, as amended by Act 222, Session Laws of Hawaii 2007, assisted with this effort by temporarily increasing the percentage of the conveyance tax paid into the rental housing trust fund from thirty to fifty per cent for two years, until June 30, 2008.

     The purpose of this Act is to increase permanently the percentage of the conveyance tax paid into the rental housing trust fund from the current allocation of thirty per cent, to sixty-five per cent.

     SECTION 2.  Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (i) to read as follows:

     "(i)  For the period commencing July 1, 2005, [through June 30, 2009,] the fund may be used to provide grants for rental units set aside for persons and families with incomes at or below thirty per cent of the median family income in any project financed in whole or in part by the fund in proportion of those units to the total number of units in the project.  [At the conclusion of the period described in this subsection, the] The corporation shall report annually to the legislature on the number and use of grants provided and whether the grants were an effective use of the funds for purposes of developing rental housing for families at or below thirty per cent of the median family income."

     SECTION 3.  Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7  Disposition of taxes.  All taxes collected each fiscal year under this chapter shall be paid [into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:] as follows:

     (1)  Ten per cent shall be paid into the land conservation fund established pursuant to section 173A-5;

     (2)  [Thirty] Sixty-five per cent shall be paid into the rental housing trust fund established by section 201H‑202; and

     (3)  Twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources in the following priority:

         (A)  To natural area partnership and forest stewardship programs after joint consultation with the forest stewardship committee and the natural area reserves system commission;

         (B)  Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners, and management of the natural area reserves system pursuant to section 195-3; and

         (C)  The youth conservation corps established under chapter 193."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2009.

INTRODUCED BY:

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