Bill > HB1410

This bill establishes a new Supportive Housing Special Fund and restructures Hawaii's conveyance tax (a tax paid when property is sold) to create a more equitable and progressive tax system. The bill introduces a marginal rate system for conveyance taxes, where higher tax rates apply only to property value amounts exceeding specific thresholds, and creates different tax rates for owner-occupied and non-owner-occupied properties. The bill aims to generate approximately $35 million annually by raising tax rates on high-value properties while maintaining revenue neutrality for lower-value properties. The additional revenue will be allocated across several funds: the Land Conservation Fund will receive 8%, the Rental Housing Revolving Fund will receive 38%, a new Supportive Housing Special Fund will receive 8%, and the Dwelling Unit Revolving Fund will receive 10%. The Supportive Housing Special Fund will specifically support developing permanent housing and services for populations with special needs, such as individuals with disabilities, veterans, survivors of domestic violence, and chronically homeless individuals. The bill also ties future conveyance tax rates to a cost-of-living adjustment to maintain equity over time and introduces special considerations for multifamily residential properties to ensure the tax structure does not disproportionately impact affordable housing developments.

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=2026