Bill > HB1410

This bill addresses housing challenges in Hawaii by restructuring the state's conveyance tax system and establishing a Supportive Housing Special Fund. The legislation introduces a marginal rate tax structure for property transfers, with rates increasing progressively based on property value, and creates a new method for calculating taxes on multifamily properties by assessing value on a per-unit basis. The bill aims to generate approximately $35 million annually by raising tax rates on high-value non-owner-occupied homes and slightly increasing rates on owner-occupied homes valued over $6 million, while maintaining revenue neutrality for lower-valued properties. The new Supportive Housing Special Fund will provide dedicated funding for developing and maintaining affordable housing for individuals with special needs, such as those transitioning from incarceration, veterans, individuals with disabilities, and the chronically homeless. Additionally, the bill allocates a portion of conveyance tax revenues to infrastructure programs in transit-oriented development zones, with specific requirements for density and permit processing. To ensure long-term effectiveness, the bill ties conveyance tax rates to a cost-of-living adjustment and establishes a mechanism for annual updates based on the Urban Hawaii Consumer Price Index. The tax restructuring is designed to create a more equitable system that supports affordable housing development and infrastructure improvement.

Agriculture and Natural Resources, Budget and Finance, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1410&year=2025