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THE SENATE |
S.B. NO. |
1405 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The purpose of this Act is to exempt any development of homestead lots or housing for the department of Hawaiian home lands from general excise and use taxes.
Section 2. Chapter 237, Hawaii Revised Statutes, is
amended by
adding a new section to be appropriately designated and to read as follows:
"§237- Exemptions for any development of
homestead lots or housing for the department of Hawaiian home lands. (a)
Any amounts related to planning, design, financing, or construction
activities conducted by a qualified person or firm for a new construction,
moderate rehabilitation, or substantial rehabilitation project for homestead
lots or housing for the department of Hawaiian home lands shall be exempted
from the tax imposed by this chapter, including but not limited to a project
developed:
(1) Under a government assistance
program approved by the department of Hawaiian home lands;
(2) Under the sponsorship of a nonprofit
organization providing home rehabilitation or new homes on Hawaiian home lands
for families qualified under the Hawaiian Home Commission Act, 1920, as
amended, in need of decent, low-cost housing; or
(3) To provide affordable rental housing
where at least fifty per cent of the available units are for households with
incomes at or below eighty per cent of the area median family income as
determined by the United States Department of Housing and Urban Development.
(b) All claims for exemption under this section
shall be filed with and certified by the department of Hawaiian home lands and
forwarded to the department of taxation by the claimant.
(c) For purposes of this section:
"Homestead
lot" means a lot of residential, agricultural, or pastoral use to be
awarded pursuant to the Hawaiian Homes Commission Act, 1920, as amended,
including but not limited to on- and off-site infrastructure requirements,
appurtenances, and dwelling units.
"Moderate
rehabilitation" shall have the same meaning as defined in section
201H-36(d).
"Qualified
person or firm" means any individual, partnership, joint venture,
corporation, association, limited liability partnership, limited liability
company, business, trust, or any organized group of persons or legal entities,
or any combination thereof, that possesses all professional or vocational
licenses necessary to do business in the State.
"Substantial rehabilitation" shall have the same meaning as defined in section 201H-36(d)."
SECTION 3. Section 238-3, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:
"(j)
The tax imposed by this chapter shall
not apply to any use of property, services, or contracting exempted by section
237-26 [or], section 237-29[.], or section 237- ."
SECTION 4. The department of Hawaiian home lands shall submit an annual report to the legislature detailing cost savings, reinvestments, and housing production increases resulting from the tax exemption prior to the regular sessions of 2027, 2028, 2029, 2030, and 2031.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on January 1, 2026.
Report Title:
DHHL; General Excise Tax Exemption; Use Tax Exemption; Reports
Description:
Exempts any development of homestead lots or housing for the Department of Hawaiian Home Lands from general excise and use taxes. Requires the Department of Hawaiian Home Lands to submit annual reports to the Legislature over a period of five years. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.