HOUSE OF REPRESENTATIVES	H.C.R. NO.	150
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

requesting the department of taxation to establish a vacant homes surcharge task force to research and report on the impacts and implementations of a general excise tax surcharge on vacant homes.

WHEREAS, an increasing number of residential properties in Hawaii are being purchased as second homes and left largely unoccupied throughout the year, creating adverse impacts on local communities and the housing market; and

WHEREAS, public infrastructure improvements made to areas surrounding vacant second homes contribute to the appreciation of property values, including the vacant homes, thereby requiring taxpayers to indirectly subsidize private real estate investments without commensurate economic returns to taxpayers; and

WHEREAS, the lack of available housing for residents has contributed to rising home prices and rental costs, making it more difficult for families to secure affordable housing; and

WHEREAS, vacant homes that are not part of the long-term rental market exacerbate the housing shortage and ultimately do not contribute to the economy through occupancy-based spending; and

WHEREAS, a surcharge on vacant homes has the potential to incentivize property owners to either occupy their properties or make them available for long-term rental, thereby contributing to Hawaii's housing inventory and local economy; and

WHEREAS, such a surcharge could generate significant revenue that may be used to support rental assistance programs and other affordable housing initiatives; and

WHEREAS, House Bill No. 489, Regular Session of 2025, among other things, establishes a general excise tax surcharge on an owner that allows a residential real property to remain vacant for one hundred eighty days or more in the previous calendar year; and

WHEREAS, implementing a vacant homes surcharge requires careful study to determine effective enforcement measures, economic impacts, and potential exemptions; now, therefore,

BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the Senate concurring, that the Department of Taxation is requested to establish a vacant homes surcharge task force to research and report on the impacts and implementation of a general excise tax surcharge similar to the one proposed in House Bill No. 489, Regular Session of 2025; and

BE IT FURTHER RESOLVED that the task force is requested to consist of the:

(1) Director of Taxation, or the Director's designee, who shall serve as the Chairperson;

(2) Director of Business, Economic Development, and Tourism, or the Director's designee;

(3) Executive Director of the Hawaii Housing Finance and Development Corporation; or the Executive Director's designee; and

(4) Any other individual as requested by the Chairperson; and

BE IT FURTHER RESOLVED that the task force is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Taxation; Director of Business, Economic Development, and Tourism; and Executive Director of the Hawaii Housing Finance and Development Corporation.

OFFERED BY:

_____________________________

Report Title:

Vacant Homes; General Excise Tax; Surcharge