STAND. COM. REP. NO. 1563-22

Honolulu, Hawaii

, 2022

RE: H.R. No. 170

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.R. No. 170 entitled:

"HOUSE RESOLUTION URGING THE COUNTIES TO UTILIZE AN EMPTY HOMES TAX AS A MEANS OF ADDRESSING AFFORDABLE HOUSING IN THE STATE,"

begs leave to report as follows:

The purpose of this measure is to urge the counties to utilize an empty homes tax, similar to the Vancouver, British Columbia empty homes tax, as a means of addressing affordable housing in the State.

Your Committee received testimony in support of this measure from the Church of the Crossroads, Faith Action for Community Equity, and one individual. Your Committee received comments on this measure from the Grassroot Institute of Hawaii.

Your Committee finds that property taxes in the State are among the lowest in the nation. In addition, about one fourth of all housing in the State is owned by people who do not reside in Hawaii. Your Committee also finds that a significant number of residential properties are vacant, which has a negative impact on the State's housing supply by taking housing units out of the housing market and contributing to the scarcity of affordable housing. An empty homes tax, which is a tax imposed on property owners to reduce empty or under-utilized residential property, would help convert existing investment properties into housing for residents, encourage long-term rentals, and generate revenues.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee concurs with the intent and purpose of H.R. No. 170 and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

NADINE K. NAKAMURA, Chair