Bill > HB489

This bill establishes a comprehensive approach to addressing vacant homes in Hawaii by creating a new tax surcharge and special fund designed to incentivize property owners to either occupy or rent out their residential properties. The bill imposes an annual 8% surcharge (4% based on average rental value and 4% based on potential lost general excise tax revenue) on residential properties that are vacant for 180 days or more per year, with various exemptions for specific circumstances like property renovations, owner hospitalization, military deployment, or recent owner death. Property owners must obtain a general excise tax license and file an annual return by February 20th detailing their property's occupancy status. The revenues collected from this surcharge will be deposited into a new Vacant Homes Special Fund, which can be used to support rental assistance programs similar to federal Section 8 housing assistance. The legislation aims to address the economic inequity of second homeowners benefiting from public infrastructure without contributing proportionally to the local economy, and to help alleviate Hawaii's housing challenges by encouraging property owners to make their homes available for long-term rental or occupancy.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=489&year=2026