Bill > SB1033

This bill establishes a new excise tax targeting large financial entities that own multiple single-family residences, with the goal of encouraging these entities to sell excess housing units. The tax applies to "applicable taxpayers" such as investment funds, asset managers, and corporations with $50 million or more in assets, excluding nonprofit organizations, housing construction companies, and individual investors. The tax is structured to progressively reduce the number of single-family residences these entities can own over nine years, starting at 90% of their initial holdings and decreasing to zero by the tenth year. If an applicable taxpayer owns more single-family residences than the maximum permissible units, they will be charged a tax of $50,000 multiplied by the number of excess units. Additionally, there is a 50% tax on the fair market value of newly acquired single-family residences. The revenues from this tax will be deposited into a new Housing Downpayment Trust Fund, which will provide downpayment assistance to families purchasing homes, with priority given to homes sold by these applicable taxpayers. The bill includes detailed reporting requirements, penalties for non-compliance, and mandates annual legislative reporting on the fund's activities. The tax will take effect on July 1, 2050, and apply to taxable years beginning after December 31, 2026.

Budget and Finance, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1033&year=2026