Bill > HB1208

This bill addresses Hawaii's housing affordability and homelessness challenges by modifying the state's conveyance tax (a tax paid when real property is transferred) with several key provisions. The bill establishes a new Homeless Services Special Fund and increases conveyance tax rates for properties valued over $600,000, with progressively higher rates for more expensive properties. It creates separate tax rate structures for single-family residences, multifamily residential properties, and properties where the purchaser is ineligible for homeowner's tax exemptions. The bill also introduces new exemptions from the conveyance tax for properties conveyed to organizations with long-term affordability requirements, certain nonprofit organizations, and owner-occupants or renter-occupants who do not own other real estate. Additionally, the bill adjusts how conveyance tax revenues are allocated, directing 8% each to the Land Conservation Fund, Rental Housing Revolving Fund, Affordable Homeownership Revolving Fund, Homeless Services Special Fund, and Dwelling Unit Revolving Fund. The legislation aims to generate sustainable revenue to support affordable housing, reduce homelessness, and help local residents manage high living costs, with an effective date of July 1, 2026.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1208&year=2026