THE SENATE	S.B. NO.	3062
THIRTIETH LEGISLATURE, 2020		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE CONVEYANCE TAX.

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

SECTION 1. The legislature finds that the State desperately needs to increase the development and construction of affordable housing units. Act 127, Session Laws of Hawaii 2016, established a rental housing goal of developing at least 22,500 rental housing units to be ready for occupancy by 2026. The rental housing revolving fund, which provides low-interest loans or grants to qualified owners and developers constructing affordable housing units, can help to fulfill the housing need.

The legislature further finds that under the current statute, fifty per cent or $38,000,000, whichever is less, is paid annually from the state conveyance tax into the rental housing revolving fund. Over the last three fiscal years, the existing cap limited rental housing revolving funds from the conveyance tax to $38,000,000. If there were no cap to these funds, the rental housing revolving fund would have had an increase in funds of $9,250,000 in fiscal year 2017, $12,300,000 in 2018, and $5,000,000 in 2019.

Accordingly, the purpose of this measure is to remove the statutory dollar amount cap on state conveyance tax moneys that may be deposited into the rental housing revolving fund. This will potentially increase the amount of state conveyance tax funds deposited into the rental housing revolving fund, thereby increasing the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units.

SECTION 2. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected 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:

(1) Ten per cent or $6,800,000, whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; and

(2) Fifty per cent [or $38,000,000, whichever is less,] shall be paid into the rental housing revolving fund established by section 201H‑202."

SECTION 3. Statutory material to be repealed is bracketed and stricken.

SECTION 4. This Act shall take effect on July 1, 2050.

Report Title:

Real Estate Conveyance Tax; Disposition; Rental Housing Revolving Fund; Cap

Description:

Removes the dollar amount cap to be paid into the rental housing revolving fund from state conveyance tax revenues. Effective 7/1/2050. (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.