HomeMy WebLinkAboutRES 307 Draft 01 2024-2026COUNTY OF HAWAPI
STATE OF HAWAIII
RESOLUTION NO. 307 25
A RESOLUTION APPROVING THE HAWAI`I COUNTY COUNCIL LEGISLATIVE
PROPOSALS AND PRIORITIES TO BE CONSIDERED FOR INCLUSION IN THE
2026 HAWAI`I STATE ASSOCIATION OF COUNTIES LEGISLATIVE PACKAGE.
WHEREAS, in October 2025, the Hawaii State Association of Counties ("HSAC")
Executive Committee will evaluate legislative proposals and priorities from each county for
inclusion in the 2026 HSAC Legislative Package that will be presented to the Hawaii State
Legislature when it convenes in January 2026; and
WHEREAS, each proposal and priority must be approved by an HSAC member county
prior to consideration by the HSAC Executive Committee; and
WHEREAS, timely action is necessary for Hawaii County Council to approve proposals
and priorities to be considered for the 2026 HSAC package; and
WHEREAS, legislative proposals submitted by Hawaii County Council are listed below
and copies attached hereto as Exhibit A:
below:
1. A draft bill to repeal the preemption of local authority to regulate tobacco products;
2. A draft bill to allow the counties to request a State land use boundary amendment
from the agricultural to rural districts for small, contiguous parcels;
3. A draft bill to require denitrification in individual wastewater systems under certain
conditions;
4. A draft bill to extend the county surcharge of the general excise tax until 2040;
5. A draft bill to establish a Homeless Services Fund to be funded through certain
adjustments to the conveyance tax; and
6. A draft bill to add preferences for an applicant's place of employment relative to the
location of a housing project, status as a state or county employee, and status as a
returning student when considering applications for housing assistance under chapter
201H, Hawaii Revised Statutes; and
WHEREAS, legislative priorities submitted by the Hawaii County Council are listed
1. Legislation related to increasing funds for emergency preparedness, evacuation
routes, notification systems, and community -level emergency planning;
2. Legislation related to increasing accessibility and transparency regarding the use of
public funds for state transportation projects and highway maintenance;
3. Legislation related to workforce development, particularly for green jobs, food
systems specialists and county government positions;
4. Legislation related to water viability and usage, and watershed monitoring and
stewardship;
5. Legislation related to responsible game management of wild ungulates;
6. Legislation related to promoting producer responsibility for solid waste;
7. Legislation related to wastewater infrastructure, cesspool conversion and related
financing; and
8. Legislation related to prioritizing and increasing means and infrastructure for multi -
modal transportation and funding for safe routes to school; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI`I that the
legislative proposals as presented in Exhibit A and the legislative priorities listed above are
hereby submitted to be considered for inclusion in the 2026 Hawaii State Association of
Counties Legislative Package.
BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to the President and Secretary of the Hawaii State Association of Counties.
Dated at Kona , Hawai`i, this 17th day of September , 2025
INTRODUCED BY:
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
I hereby certify that the foregoing RESOLUTION was by
the vote indicated to the right hereof adopted by the COUNCIL of the
County ofHawai`i on September 17, 2025
ATTEST:
4ZX�CLT�LERSON & PRESIDING OFFICER
r
CIL MEMBER, 6OUNTY OF HAWAI`I
ROLL CALL VOTE
AYES
NOES
ABS
EX
GALIMBA
X
HUSTACE
X
INABA
X
KAGIWADA
X
KANEALI`I-KLEINFELDER
X
KIERKIEWICZ
X
KIMBALL
X
ONISHI
X
VILLEGAS
X
9
0
1 0
0
Reference: C-490/Waived GOEAC
RESOLUTION NO. 30 25
4
EXHIBITA
REVISED:
1ST DRAFT DATE:
.B. NO.
A BILL FOR AN ACT
RELATING TO THE REGULATION OF TOBACCO PRODUCTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1
2 SECTION 1. The legislature finds that tobacco use remains the
3 leading cause of preventable death in the United States and in
4 Hawaii. Recent years have brought a precipitous increase in
5 consumer sales of electronic smoking devices, sometimes called
6 "vapes", and one inhalation of these products can contain many
7 times more nicotine than a conventional cigarette. Electronic
8 smoking devices have played a major role in increased rates of
9 youth nicotine addiction, which had been previously on the
10 decline.
11
12 This increased youth tobacco prompted Hawaii to adopt laws to
13 increase the smoking age to 21 years old, and treat electronic
14 cigarettes in the same manner as the state treats conventional
15 cigarettes for purposes of clean indoor air laws. The state and
16 the County of Hawaii, County of Maui, and City and County of
17 Honolulu have also adopted policies to ban smoking - including
18 electronic cigarette use - at state and county beaches and
19 parks.
20
21 In 2018, in order to ensure uniform regulations on tobacco
22 sales, the legislature passed Act 206, which, in part, declared
23 the sale of cigarettes, tobacco products, and electronic smoking
24 devices a matter of statewide concern, and nullified any
25 existing local ordinances or policies that restricted the'sale
26 of these products. However, the legislature finds that since the
27 Act's passage, youth tobacco use has continued to increase to
28 epidemic levels. According to the 2019 Hawaii Youth Risk
29 Behavior Survey, thirty-one per cent of middle school students
30 and forty-eight per cent of public high school students had
31 tried electronic smoking devices. The 2019 Hawaii Youth Risk
32 Behavior Survey also indicates that eighteen per cent of middle
33 school students and thirty-one per cent of high school students
34 currently vape.
35
36 The legislature further finds that in order to end this youth
37 vaping epidemic, the state must work in concert with youth,
38 parents, and educational institutions, and laws must be changed
39 at all levels of government to establish reasonable restrictions
40 on the sale.of and access to these addictive products.
41
42 Accordingly, the purpose of this Act is to reauthorize the
43 counties to enact restrictions of the sales of tobacco products,
44 including electronic smoking devices, by inserting a sunset date
45 into Act 206, Session Laws of Hawaii 2018.
46
47
48 SECTION 2. Section 9328J-11.5, Hawaii Revised Statutes, is
49 repealed.
50
51 [S e"de ee eexer—(a) Sales-e€ _ - __ttes, tebae_- - eduet=,
52 and eleetEenle s ing deviees are a statewide eeeeeeni�
53 $fie --PA-eat eflegislature to Eegalate the sale-e€
54 eigaEebtes, ebae_e pEeeleets, aBd eleeturni a sm ekin rtr_Trlees � n
55 a--;iri€Eerie-luslve 1aaeaeE.
56 -(b•)--All leeal eedin-neeeem megulatzens-that _ Wa _.._
57 the sale e€ e4:gafettes, tebaeee-pEeduetsf and-eleetEeaie =om_1
58 devices affe pEeempted, and emistiRg 1 9e l laws and EeW l ati nn_
59 eenfileting with this-ehapter- are niall-veld.
60 e) Nething-max this ehap_teE shall be eeftstEued
61 11m:4:t a e9untys--autbeElt-y undeE Beet&en a22-8j-lb-j
62
63 SECTION 3. Statutory material to be repealed is bracketed and
64 stricken.
65
66 SECTION 4. This Act shall take effect upon approval.
HOUSE OF REPRESENTATIVES H.B.
NO.
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII
j A BILL FOR AN ACT
RELATING TO LAND USE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. The legislature finds that small lot
2 subdivisions exist in agricultural districts within each county
3 that may be more appropriately placed within the rural district.
4 Many of these lots were created for speculative purposes before
5 the enactment of the state land use law in 1961.
6 The legislature further finds that the counties have an
7 interest in redistricting these lands as they may contain lots
8 and uses that are non -conforming or of insufficient size to
9 support commercial agricultural use.
10 Therefore, the purpose of this Act is to allow each of the
11 counties a temporary opportunity to petition for the
12 redistricting of land from the agricultural district to the
13 rural district through the land use commission's declaratory
14 ruling process.
15 SECTION 2. (a) Between July 1, 2024, and December 31,
16 2026, the planning commission of any county may petition the
17 land use commission, established by chapter 205, Hawaii Revised
I� IIII�� ��II II---II-�- -p-) I�II�I I�IIflNI II'III 1
Page 2 H.B. NO.
1 Statutes, for redistricting of land from an agricultural
2 district to a rural district; provided that the following
3 requirements are met:
4
(1)
The land has been:
5
(A) Developed for single-family residences that are
6
currently in the agricultural district; and
7
(B) Subdivided into lots that are no larger than two
8
acres in size;
9
(2)
The land is part of an existing agricultural
10
subdivision consisting of more than twenty subdivided
11
lots;
12
(3)
A single-family residence is constructed on each lot,
13
or the lot is part of an agricultural subdivision
14
intended for single-family residential construction;
15
(4)
The requirements of chapter 343, Hawaii Revised
16
Statutes, if applicable, are met at the time of
17
redistricting;
18
(5)
The redistricting would not adversely affect the
19
ability of neighboring lands to be used for
20
agricultural purposes;
2
Page 3 H.B.
NO.
1 (6) The area petitioned for redistricting is supported by
2 the applicable county plan;
3 (7) The applicable county planning commission provides:
4 (A) All affected landowners reasonable notice of the
5 proposed redistricting petition;
6 (B) The public an opportunity to comment on the
7 proposed redistricting petition; and
8 (C) Required due process for district boundary
9 amendments under constitutional and statutory
10 law; and
11 (8) The office of planning and sustainable development
12 shall in every case appear as a party, at both state
13 and county levels, and make recommendations to address
14 state interests and public trust issues.
15 (b) The land use commission shall process petitions under
16 subsection (a) as declaratory rulings within three hundred
17 sixty-five days from the petition being deemed complete. If the
18 land use commission finds that there is insufficient evidence
19 presented by the applicable county planning commission or that
20 significant public trust issues are presented by the petition,
21 the land use commission may:
3
Page 4 H.B. NO.
1 (1) Deny the petition in whole or in part; or
2 (2) Schedule a contested case hearing on the matter
3 consistent with its administrative rules.
4 (c) The land use commission shall adopt rules pursuant to
5 chapter 91, Hawaii Revised Statutes, to implement this Act.
5 SECTION 3. This Act shall take effect on July 1, 3000, and
7 shall be repealed on December 31, 2027.
4
H.B. NO.
Report Title:
Land Use Commission; County Planning Commissions; Petition; Land
Redistricting; Agricultural District; Rural District
Description:
Between 7/1/2024 and 12/31/2026, authorizes each county planning
commission to petition for the redistricting of lands from
agricultural districts to rural districts through the Land Use
Commission's declaratory ruling process. Sunsets 12/31/2027.
Effective 7/1/3000. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent:
.B. NO,.
A BILL FOR AN ACT
RELATING TO THE ENVIRONMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. The legislature finds that protecting the
2 State's nearshore waters is important for ecosystem resilience
3 and public health. Clean nearshore waters, free of pollutants•,
4 help support the coral reef -systems that are critical to
5 Hawaii's fisheries.. A 2023 study published in the scientific
6 Journal Nature found that coral reefs that are protected
from
7 land -based pollutants, especially wastewater
pollutants,
are
8 better able to recover from ocean warming events.
9 Accordingly•, the purpose of this Act is to require newly
14 installed or modified individual wastewater systems that are
11 near the shoreline, or likely to pollute groundwater, to include
12 denitrification capacity.
13 SECTION 2. Chapter 342D, Hawaii Revised Statutes, is
14 amended by adding a new section to part III to be appropriately
�r
15 designated and to read as follows:
Page 2 R
.,NO.
1 115342D- Individual wastewater systems; denitrification
2 capacity. (a) Each individual wastewater system that is newly
3 installed or modified shall have denitrification capacity if:
4 (1) The wastewater system is located two hundred feet or
5 less from a shoreline; or
6 (2) The wastewater system is located at or below one
7 thousand five hundred feet above sea level and:
8
9
10
11
12
13
14
15
16
17
18
19
20
(A) The substrate is less than five thousand years
old; and
(B) The soil has low nutrient holding capacity, low
shrink and swell characteristics, and very fast
water permeability, basted on the Hawaii soil.
atlas.
(b) For the purposes of this section, "denitrification
capacity" means being certified to meet the guidelines of the
National Sanitation Foundation/American National Standards
Institute standard 245 for on -site residential wastewater
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050..
`a
.B. NO.
Report Title:.
Environment; Individual Wastewater Systems; Nearshore waters;
Denitrification capacity
Description:
Requires newly installed or modified individual wastewater
systems that are near the shoreline, or likely to pollute
groundwater., to include denitrification capacity. Takes effect
7 f l/2050:
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent
THE SENATE [� NO.
THIRTY-THIRD LEGISLATURE, 2025 S.B.
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO GENERAL EXCISE TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. The legislature finds the need to extend the
2 county surcharge on state general excise taxes, which was
3 enacted by Act 247, Session Laws of Hawaii 2005..
4 SECTION 2. Section 46-16.8, Hawaii Revised Statutes, is
5 amended as follows:
6 1. By amending subsections (b) and (c) to read:
7 "(b) Each county that has established a surcharge on state
8 tax before July 1, 2015, under authority of subsection (a) may
9 extend the surcharge until December 31, [2038;] 2045, at the
10 same rates. A county electing to extend this surcharge shall do
11 so by ordinance; provided that:
12 (1) No ordinance shall be adopted until the county has
13 conducted a public hearing on the proposed ordinance;
14 and
15 (2) The ordinance shall be adopted before January 1,
16 [2018.] 2028.
2 02 5- 0 0 9 55If��S�pB IIImS�MA ..I�d� o Ic�xp�I�I 1
11111111U I�IIIVIIV�I��II1I�IU�I1I���II�I
Page 2 S.B.
NO.
1 A county electing to exercise the authority granted under
2 this subsection shall notify the director of taxation within ten
3 days after the county has adopted an ordinance extending the
4 surcharge on state tax. The director of taxation shall levy,
5 assess, collect, and otherwise administer the extended surcharge
6 on state tax.
7 (c) Each county that has not established a surcharge
8 pursuant to subsection (a) on state tax before ,July 1, 2015, may
9 establish the surcharge at the rates enumerated in sections 237-
10 8.6 and 238-2.6. A county electing to establish this surcharge
11 shall do so by ordinance; provided that:
12 (1) No ordinance shall be adopted until the county has
13 conducted a public hearing on the proposed ordinance;
14 (2) The ordinance shall be adopted before December 31,
15 2023; and
16 (3) No county surcharge on state tax that may be
17 authorized under this subsection shall be levied
18 before January 1, 2019, or after December 31, [2038:]
19 2045.
20 A county electing to exercise the authority granted under
21 this subsection shall notify the director of taxation within ten
20��II25p�I-�0
IIII0��95 SBII�� SMA��.II dolc�px��IIppIIII
Page S.B. NO.
1 days after the county has adopted a surcharge on state tax
2 ordinance., Beginning on January 1, 2019, January 1, .2020,
3 January 1, 2024, or January 1, 2025, as applicable pursuant to
4 sections 237-8.6 and 238-2.6, the director of taxation shall
5 levy, assess; collect, and otherwise administer the county
6 surcharge on state tax."
7 2. By amending subsection (g) to read:
8 "(g) Each county having a population.equal to or less than
9 five hundred thousand that adopts a county surcharge on state
10 tax ordinance pursuant to this section shall use the surcharges
11 received from the State for:
12 (1) Operating or capital costs of public transportation
13 within each county for public transportation systems,
14 including:
15 (A) Public roadways or highways
16 (B) Public buses;
17 (C) Trains;
18 (D) Ferries;
19 (E) Pedestrian paths or sidewalks; or
20 (F) Bicycle, paths;
2025-0095 SBSMA.docx
IMlIpppp 3
I� NININII II��pp IIIIINIRMI
Page 4
S.B. NO.
1 (2) Expenses in
complying with the
Americans
with
2 Disabilities
Act of 1990 with
respect to
paragraph
3 (1) and
4 (3) Housing.infrastructure costs; provided that a county
5 that uses surcharge revenues for housing
6 infrastructure shall not pass on those housing
7 infra.structure costs to the developer of a housing
8 project [ i pr-evi-ded ftrrther that this paragraph sha
9 apply amended its siage ind; r
10 puEsuant to subseetle
11 �,.. ber- 3
��-�ts��r-d3x-a�ee--a-€-��� ,
12 2922;-
13 p.r� ided—that—each __=rty having pepidlatien equal te eE less
14 than five hundred —this d that adepts a eeunty—sur-eharge-en
15 state tam—eEdlnaReejqaesuantt:e- this —5eetien—afteff Deeember-3 ,
16 2022,
17
sh='�� es—thin--surehsr-ge
deserribed
revenues = - = = rveel-r-e- the State
in (3) fems eeants
enlyfer
18
the a eses
paragraph
I . "
19 SECTION 3. Section 2.37-8.6, Hawaii Revised Statutes, is
20 amended by amending subsection (b) to read as follows:
202 5-0095 SBSMA.ppI�M IdmmolI��cx��II 4
1011111011IIpp 1111 �IR
Page 5
S.B. NO.
1
"(b)
Each county surcharge on state tax that may be
2
adopted,
extended, or amended pursuant to section 46-16.8 shall
3
be levied
beginning in a taxable year after the adoption of the
4
relevant
county ordinance; provided that no surcharge on state
5
tax may be
levied:
6
(1)
Before:
7
(A) January 1, 2007, if the county surcharge on state
8
tax was established by an ordinance adopted
9
before December 31,: 2005;
10
(B) January 1, 2019, if the county surcharge on state
11
tax was established by the adoption of an
12
ordinance after June 30, 2015, but before June
13
30, 2018;
14
(C) January 1, 2020, if the county surcharge on state
15
tax was established by the adoption of an
16
ordinance on or after June 30, 2018, but before
17
March 31, 2019;
18
(D) January 1, 2024, if the county surcharge on state
19
tax was established by the adoption of an
20
ordinance on or after March 31, 201.9, but before
21
August 1, 2023; or
2025-0095 SBpppp S IM��AI�pp. docx��pplI�� 5
M�IINUMI �I�IIIIVIIIIII IIIIIIII
Page 6
S.B. NO.
1 (E_) January 1, 2025, if the county surcharge on state
2 tax was established by the adoption of an
3 ordinance .on or after August 1, 2023, but before
4 December 31, 2023; and
5 (2) After December 31, [2939.] 2045."
6 SECTION 4. Act 247,, Session Laws of Hawaii 2005, as
7 amended by Act 240, Session Laws of Hawaii 2015, as amended by
8 Act 1, Special Session. Laws of 2017, is amended by amending
9 section 9 to read as follows:
10 "SECTION 9. This Act shall take effect upon its approval;
11 provided that:,
12 (1) If none of the counties of the State adopt an
13 ordinance to levy a county surcharge on state tax by
14 December 31, 2005, this Act shall be repealed and
15 section 437.D-8.4, Hawaii Revised Statutes, shall be
16 reenacted in the form in which it read on the day
17 prior to the effective date of this Act;
18 (2) If any county does not adopt an ordinance to levy a
19 county surcharge on state tax by December 31, 2005, it
20 shall be prohibited from adopting such an ordinance
I2025-0095 SBpppp IISSMpp�p�IA��IIII.��ggd��ocxlIpp��IIpppp 6
I IIIIII111111011®1� � 0�1011 1 111 01�
I
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Page 7
S.B. NO.
pursuant to this Act, unless otherwise authorized by
the legislature through a separate legislative act;
(3) If an ordinance to levy a county surcharge on state
tax is adopted by December 31,, 2005:
(A.) The ordinance shall be repealed on December 31,
2022,; provided that the repeal of the ordinance
shall not affect the validity or effect of an
ordinance to extend a surcharge on state tax
adopted pursuant to an act of the legislature,;
and
(B) This Act shall be repealed on December 31.,
[;-] 2045; and section 437D-8.4, Hawaii
Revised Statutes, shall be reenacted in the form
in which it read on the day prior to the
effective date of this Act; provided that the
amendments made to section 437D-8.4, Hawaii
Revised Statutes by Act 226, Session Laws of
Hawaii 2008, as amended by Act 11, Session Laws
of Hawaii 2009, and Act 110, Session Laws of
Hawaii 2014, shall not be repealed."
2025-0095 SB SMA. docx
I1111111MMUME11111111 1
Page 8
S.B. NO.
1 SECTION 5. Statutory material to be repealed is bracketed
2 and stricken. New statutory material is underscored.
3 SECTION 6. This Act shall take effect upon its approval.
4
INTRODUCED BY:
2025-0.0.95 SB��II SMAII''.II docx s
Page 9
I2pp0�p2�I�5�p-�ry0095 ISSB 'ISSMA.p�dloocxI�II�I
UI�I�IIN IIII IIIII�III���V�IIIII�II�i�lIIHI
S.B. NO.
S.B. NO.
Report Title:
County Surcharge on State Tax;. General Excise Tax Law; Extension
Description:
Authorizes each county that has established a surcharge on state
tax before 7./1/2015 to extend the surcharge until 1.2/31/2045,, at
the same rates, if the county does so before 1/1/202.8; Provides
that no county surcharge on state tax authorized for a county
that has not established a surcharge on state tax before
7/l/2015, shall be levied before 1/l/2019, or after 12/3.1/2.045;
and Repeals certain conditions on the use of surcharges received
from the State for counties having a population equal to or less
than 500,000 that adopt a county surcharge on state tax.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
2025-00��9II''5''IIIIIIpS��BI� SMpA..docx ��''II
1110111111 IIUIIU�i�111111111�
A BILL FOR AN ACT
RELATING TO THE CONVEYANCE TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the health,
happiness, and well-being of Hawaii's people depends on the
State's ability to address the high cost of living, particularly
the high cost of housing, that is fueling the homelessness
crisis and forcing local families to move out of the State. The
sustainability of the State's unique and irreplaceable natural
resources is critical to its residents' quality of life. To
address these problems and secure a prosperous future for the
State's children, greater investment into public resources from
a sustainable revenue source is needed to reduce the cost of
housing for residents, preserve the-State's natural resources,
and provide solutions for community members experiencing
houselessness.
The legislature also finds that the conveyance tax, a one-
time tax at the time of real property sales, is an appropriate
revenue source for affordable housing, land conservation, and
homeless services. Although housing prices in the State have
risen dramatically over the past thirteen years, the State's
conveyance tax rates have not been updated since Act 59, Session
Laws of Hawaii 2009. Presently, the State's conveyance tax is
significantly lower than the rates of other high -cost areas in
the country.
Cities across the country are increasing their conveyance
tax rates to fund affordable housing. San Francisco increased
the tax rate to 5.5 per cent on homes valued over $10,000,000 in
2020, and two years ago Los Angeles increased the real property
transfer tax to 4.5 per cent on any residential or commercial
property over $5,000,000 in value and six per cent on property
sales over $10,000,000 in value. Smaller cities with high
housing costs are also increasing the taxes on real estate sales
to mitigate the impacts of housing costs. Crested Butte and
Telluride in Colorado, which attract wealthy buyers due to
access to world class ski opportunities, have a tax of three per
cent on home sales regardless of price. Aspen, Colorado, which
has the most well -developed workforce housing program in the
country where almost forty per cent of the housing total housing
stock is reserved as permanently affordable housing for full-
time residents, has largely funded their workforce housing
program through a 1.5 per cent tax on property sales that has
been in place since 1989.
Presently, it is common practice to tax property sales as a
means to mitigate the impacts of high home costs and the loss of
land due to housing development. Furthermore, a conveyance tax
of 0.5 per cent on homes valued at less than $5,000,000, a rate
of four per cent on homes valued between $5,000,000 and
$10,000,000, and six per cent on homes valued at over
$10,000,000 conforms to tax rates that other cities are
assessing to fund their various housing programs.
The legislature additionally finds that increases in tax
rates on homes over $5,000,000 is unlikely to have any negative
impact on local full-time residents as the vast majority of
buyers who purchase these homes do so as an investment and not
as their full-time residence. The monthly mortgage costs of a
$5,000,000 home are approximately $32,600 a month, which would
be considered affordable for an individual or a couple earning
$81,500 per month, or roughly $978,000 a year. Very few
families in Hawaii would fall within these income categories,
and those that do most likely already own a home and are not
impacted by rising rents or the lack of affordable
housing. Accordingly, it is appropriate for out-of-state
investors of real estate to assist in mitigating the impacts for
residents who are not benefiting from the current market
dynamics. Renters, houseless residents, and the local workforce
are struggling with the rising cost of housing, thus a tax on
real estate at the time of sale to help mitigate those costs is
appropriate and fair.
The legislature recognizes that the increases in housing
prices, residential rent, and the homeless population over the
past several years has accelerated the urgent need to
sustainably fund affordable housing and homeless services in
Hawaii. The 2023 point in time count estimates that there are
currently 6,223 individuals living unsheltered in the State, not
including the greater number of "hidden homeless" individuals
temporarily living with friends or relatives because they cannot
afford to live on their own. Investing in affordable housing
and homeless services, including supportive housing, is key to
addressing homelessness and ensuring that everyone in the State
has an affordable place to live.
Accordingly, the purpose of this Act is to:
(1) Establish the homeless services special fund;
(2) Allow counties to apply for matching funds from the homeless services special
fund and the affordable homeownership revolving fund for housing projects that are
subject to a perpetual affordability requirement;
(3) Increase the conveyance tax rates for certain properties;
(4) Establish conveyance tax rates for multifamily residential properties;
(5) Exempt from conveyance taxes the conveyances of real property to:
(A) Organizations with certain affordability
requirements;
(B) Certain nonprofit organizations; and
(C) An owner -occupant or renter -occupant of the
property; and
(6) Allocate collected conveyance taxes to the affordable homeownership
revolving fund, homeless services special fund, and dwelling unit revolving fund and
amend allocations to the land conservation fund and rental housing revolving fund.
SECTION 2. Chapter 346, Hawaii Revised Statutes, is
amended by adding a new section to part XVII to be appropriately
designated and to read as follows:
"§346- Homeless services special fund. (a) There is
established within the state treasury a homeless services
special fund, to be administered and managed by the department
and into which shall be deposited:
0 Ten per cent of the conveyance tax collected and allocated to the homeless
services fund pursuant to section 247-7,
Appropriations made by the legislature; and
Q Interest earned upon any moneys in the fund.
(b) Moneys from any other private or public source may be
deposited in or credited to the fund; provided that any
mandates, regulations, or conditions on these funds do not
conflict with the use of the fund under this section. Moneys
received as a deposit or private contribution shall be
sited, used, and accounted for in accordance with the
conditions established by the agency or person making the
contribution.
(c) Moneys in the homeless services special fund shall be
used by the department for homeless services and supportive
housing, including homeless facilities programs for the homeless
authorized by the department.
(d) The department shall submit a report to the
legislature providing an accounting of the fund no later than
twenty days prior to the convening of each regular session. The
report shall include, at minimum:
r
LD A detailed account of all funds received; and
All moneys expended from the homeless services special fund."
SECTION 3. Section 201H-206, Hawaii Revised Statutes, is
amended to read as follows:
"[+1§201H-206[}] Affordable homeownership revolving
fund. (a) There is established an affordable homeownership
revolving fund to be administered by the corporation for the
purpose of providing, in whole or in part, loans to nonprofit
community development financial institutions and nonprofit
housing development organizations for the development of
affordable homeownership housing projects.
(b) Loans shall be awarded in the following descending
order of priority:
(1) Projects or units in projects that are funded by programs of the United States
Department of Housing and Urban Development, United States Department of
Agriculture Rural Development, and United States Department of the Treasury
Community Development Financial Institutions Fund, wherein:
(A) At least fifty per cent of the available units
are reserved for persons and families having
incomes at or below eighty per cent of the median
family income and of which at least five per cent
of the available units are for persons and
families having incomes at or below fifty per
cent of the median family income; and
(B) The remaining units are reserved for persons and
families having incomes at or below one hundred
twenty per cent of the median family income; and
(2) Mixed -income affordable for -sale housing projects or units in a mixed -income
affordable for -sale housing project wherein all of the available units are reserved for
persons and families having incomes at or below one hundred per cent of the median
family income.
(c) Moneys in the fund shall be used to provide loans for
the development, pre -development, construction, acquisition,
preservation, and substantial rehabilitation of affordable for -
sale housing units. Uses of moneys in the fund may include but
are not limited to planning, design, and land acquisition,
including the costs of options, agreements of sale, and down
payments; equity financing as matching funds for nonprofit
community development financial institutions; or other housing
development services or activities as provided in rules adopted
by the corporation pursuant to chapter 91. The rules may
provide that money from the fund shall be leveraged with other
financial resources to the extent possible.
(d) The fund may include [ suers ]
kD Sums appropriated by the legislature[-,pnvate];
M Private contributions[-,preeeeds];
Proceeds from repayment of loans[, �„-ter];
Interests and other returns[,];
f5� Conveyance taxes collected under chapter 247 and allocated to the affordable
homeownership revolvingpursuant to section 247-7; and [ems]
(6) Moneys from other sources.
(e) An amount from the fund, to be set by the corporation
and authorized by the legislature, may be used for
administrative expenses incurred by the corporation in
administering the fund; provided that moneys in the fund shall
not be used to finance day-to-day administrative expenses of the
projects allotted moneys from the fund.
(f) The corporation may provide loans under this section
as provided in rules adopted by the corporation pursuant to
chapter 91.
(g) The corporation may contract with nonprofit community
development financial institutions to fund loans under this
section. The corporation may contract for the service and
custody of its loans.
(h) The corporation may establish, revise, charge, and
collect a reasonable service fee, as necessary, in connection
with its loans, services, and approvals under this part. The
fees shall be deposited into the affordable homeownership
revolving fund.
(i) Counties may apply for matching funds from the fund;
provided that prior to applying for any matching funds, the
counties shall have an approved comprehensive affordable housing
plan that:
Identifies available lands for affordable housing;
Q Identifies infrastructure needs and availability; and
M Requires housing projects developed using moneys from the fund to be subject
to an affordability clause that keeps the property affordable in perpetuity, also known
as a "deed -restricted property
provided further that costs for the development of or an update
to an existing county comprehensive affordable housing plan may,
upon application, be paid out of these funds.
[4i+] (j) The corporation shall submit a report to the
legislature no later than twenty days prior to the convening of
each regular session describing the projects funded using moneys
from the affordable homeownership revolving fund."
SECTION 4. Section 247-2, Hawaii Revised Statutes, is
amended to read as follows:
"§247-2 Basis and rate of tax. The tax imposed by section
247-1 shall be based on the actual and full consideration
(whether cash or otherwise, including any promise, act,
forbearance, property interest, value, gain, advantage, benefit,
or profit), paid or to be paid for all transfers or conveyance
of realty or any interest therein, that shall include any liens
or encumbrances thereon at the time of sale, lease, sublease,
assignment, transfer, or conveyance, and shall be at the
following rates:
(1) Except as provided in [paragraph (2-) ] paragrphs (2) and (3):
(A) ['Fen eentfi peE $-199fer] For properties with a
value of less than $600,000[-•]: 10 cents per
$100;
(B) [Twenty e-ents per $109 fer-] For properties with a
value of at least $600,000, but less than
$1,000,000[--]: 20 cents per $100;
(C) [Thirty-e $100 fer] For properties with a
value of at least $1,000,000, but less than
$2,000,000[--]: 30 cents per $100;
(D) [Fifty eents- eL= $100-€er] For properties with a
value of at least $2,000,000, but less than
$4,000,000[-•]: 50 cents per $100;
(E) [Seventy ee-nts-pew$-190 fe-r] For properties with
a value of at least $4,000,000, but less than
$6, 000, 000 [-• ] : 70 cents per $100;
(F) [Ninety e_n} peL= $1^�=] For properties with a
value of at least $6,000,000, but less than
$10,000,000[; ant : $1.10 per $100;
(G) [Gne dell-ai= per $100 fe=] For properties with a
value of at least $10, 000, 000 [ems -greater-; an 1,
but less than $14,000,000: $1.40 per $100;
(H) For properties with a value of at least
$14,000,000, but less than $18,000,000: $2.00
per $100;
(I) For properties with a value of at least
$18,000,000, but less than $22,000,000: $3.00
per $1.00;
(J) For properties with a value of at least
$22,000,000, but less than $26,000,000: $4.00
per $100; and
(K) For properties with a value of $26,000,000 or
greater: $6.00 per $100;
,(2) For the sale of a multifamily residential property:
(A) For properties with a value of less than
$600,000: 10 cents per $10.0;
(B) For properties with a value of at least $600,000,
but less than $1,000,000: 20 cents per $100;
(C) For properties with a value of at least
$1,000,000, but less than $2,000,000: 30 cents
per $100;
(D) For properties with a value of at least
$2,000,000, but less than $4,000,000: 50 cents
per $100;
(E) For properties with a value of at least
$4,000,000, but less than $6,000,000: 70 cents
per $100;
(F) For properties with a value of at least
$6.000,000, but less than $10,000,000: 90 cents
per $100;
(G) For properties with a value of at least
$10,000,000, but less than $20,000,000: $1 per
do1nn.
(H) For properties with a value of at least
$20,000,000, but less than $50,000,000: $1.25
per $100;
(I) For properties with a value of at least
$50,000,000, but less than $100,000,000: $1.50
per $100; and
(J) For properties with a value of $100,000,000 or
greater: $2.00 per $100; and
[(2)] (D For the sale of a condominium or single family residence for which the
purchaser is ineligible for a county homeowner's exemption on property tax:
(A) [Fifteen eents per $100 fe-] For properties with
a value of less than $600,000[--]: 15 cents per
$100;
(B) [T-Bey-five Bents -per- $109 Per-] For properties
with a value of at least $600,000, but less than
$1,000,000[-•]: 25 cents per $100;
(C) [Ferty eel -per $100--€er] For properties with a
value of at least $1,000,000, but less than
$2,000,000[-•]: 40 cents per $100;
(D) [Sim-eent-s- per- $19-€er] For properties with a
value of at least $2,000,000, but less than
$4,000,000[-•]: $1.00-per $100;
(E) [Bghty five eents peL$-1-00 fe=] For properties
with a value of at least $4,000,000, but less
than $6,000,000[,]: $1.50 per $100;
iffe-r] For properties with a value of at least
$6,000,000, but less than $10,000,000[,-
e-nd]: $2.00 per $100;
(G) [Gne-dellar and twenty five -eels- per- , 0 T
fir] For properties with a value of at
least $10,000,000 [er- great-er-;], but less than
$14,000,000: $3.00 per $100;
(H) For properties with a value of at least
$14,000,000, but less than $18,000,000: $4.00
per $100;
(I) For properties with a value of at least
$18,000,000, but less than $22,000,000: $5.00
per $100;
(J) For properties with a value of at least
$22,000,000, but less than $26,000,000: $6.00
per $100; and
(K) For properties with a value of $26,000,000 or
greater: $7.00 per $100,
of [sueh] the actual and full consideration; provided that in
the case of a lease or sublease, this chapter shall apply only
to a lease or sublease whose full unexpired term is for a period
of five years or more[, and in these eases, inelading (where
appr� rate) theseeaseswhere t ] ; provided further that if
a lease has been extended or amended, the tax in this chapter
shall be based on the cash value of the lease rentals discounted
to present day value and capitalized at the rate of six per
cent, plus the actual and full consideration paid or to be paid
for any and all improvements, if any, that shall include on -site
as well as off -site improvements, applicable to the leased
premises; and provided further that the tax imposed for each
transaction shall be not less than $1.
For purposes of this section, "multifamily residential
property" means a structure that is located within the state
urban land use district and divided into five or more dwell
units."
SECTION 5. Section 247-3, Hawaii Revised Statutes, is
amended to read as follows:
"§247-3 Exemptions. The tax imposed by section 247-1
shall not apply to:
(1) Any document or instrument that is executed prior to January 1, 1967;
(2) Any document or instrument that is given to secure a debt or obligation;
(3) Any document or instrument that only confirms or corrects a deed, lease,
sublease, assignment, transfer, or conveyance previously recorded or filed;
(4) Any document or instrument between husband and wife, reciprocal
beneficiaries, or parent and child, in which only a nominal consideration is paid;
(5) Any document or instrument in which there is a consideration of $100 or less
paid or to be paid;
(6) Any document or instrument conveying real property that is executed pursuant
to an agreement of sale, and where applicable, any assignment of the agreement of
sale, or assignments thereof, provided that the taxes under this chapter have been fully
paid upon the agreement of sale, and where applicable, upon such assignment or
assignments of agreements of sale;
(7) Any deed, lease, sublease, assignment of lease, agreement of sale, assignment
of agreement of sale, instrument or writing in which the United States or any agency
or instrumentality thereof or the State or any agency, instrumentality, or governmental
or political subdivision thereof are the only parties thereto;
(8) Any document or instrument executed pursuant to a tax sale conducted by the
United States or any agency or instrumentality thereof or the State or any agency,
instrumentality, or governmental or political subdivision thereof for delinquent taxes
or assessments;
(9) Any document or instrument conveying real property to the United States or
any agency or instrumentality thereof or the State or any agency, instrumentality, or
governmental or political subdivision thereof pursuant to the threat of the exercise or
the exercise of the power of eminent domain;
(10) Any document or instrument that solely conveys or grants an easement or
easements;
(11) Any document or instrument whereby owners partition their property, whether
by mutual agreement or judicial action; provided that the value of each owner's
interest in the property after partition is equal in value to that owner's interest before
partition;
(12) Any document or instrument between marital partners or reciprocal
beneficiaries who are parties to a divorce action or termination of reciprocal
beneficiary relationship that is executed pursuant to an order of the court in the
divorce action or termination of reciprocal beneficiary relationship;
(13) Any document or instrument conveying real property from a testamentary
trust to a beneficiary under the trust;
(14) Any document or instrument conveying real property from a grantor to the
grantor's revocable living trust, or from a grantor's revocable living trust to the grantor
as beneficiary of the trust;
(15) Any document or instrument conveying real property, or any interest therein,
from an entity that is a party to a merger or consolidation under chapter 414, 414D,
415A, 421, 421C, 425, 425E, or 428 to the surviving or new entity;
(16) Any document or instrument conveying real property, or any interest therein,
from a dissolving limited partnership to its corporate general partner that owns,
directly or indirectly, at least a ninety per cent interest in the partnership, determined
by applying section 318 (with respect to constructive ownership of stock) of the
federal Internal Revenue Code of 1986, as amended, to the constructive ownership of
interests in the partnership; []
[1](17)[4]Any document or instrument that conforms to the transfer on death deed as
authorized under chapter 527[:]s
18 Any document or instrument conveying real property to an organization that:
(A) Has a minimum of thirty years remaining of a
price -restricted affordability period; or
(B) Places a deed restriction on the property to
maintain permanent affordability.
For purposes of this paragraph:
"Permanent affordability" means a requirement that a residential real property
remain affordable to households with incomes at or below one hundred twenty p
cent of the area median income as determined by the United States Department of
Housing and Urban Development for the life of the property.
"Price -restricted affordability period" means the period for which a
residential real property is restricted to renter households with incomes at or below
one hundred twenV per cent of the area median income as determined by the United
States Department of Housing and Urban Development applicable to the location of
the real property for the applicable federal fiscal year;
19 Any document or instrument conveying real property to a nonprofit
organization that:
(A) Is exempt from federal income tax by the Internal
Revenue Services; and
(B) Will hold the property in an undeveloped state
and for conservation purposes in perpetuity
through a deed restriction on the property; and
J201 Any document or instrument conveying real property to an individual who is
an owner -occupant or renter -occupant of the property; provided the individual does
not have a direct or indirect ownership interest in any other real property, including
through ownership interest in a trust, partnership, corporation, limited liability
company, or other entity."
SECTION 6. Section 247-7, Hawaii Revised Statutes, is
amended to read as follows:
"§247-7 Disposition of taxes. All taxes collected under
this chapter shall be paid into the state treasury to the credit
of the general fund of the State, to be used and expended for
the purposes for which the general fund was created and exists
by law; provided that of the taxes collected each fiscal year:
(1) [T-en] BjgjA per cent [^M $5,100,000, .t,1,ieheyer- is lost] shall be paid into the
land conservation fund established pursuant to section 173A-5; []
(2) Pifty per- eeRtor- $ 28,000,000, wt,ieheyer is less,] Thirty-eight per cent shall
be paid into the rental housing revolving fund established by section 201H-202[:];
M 'Eight per cent shall be paid into the affordable homeownership revolving fund
established pursuant to section 201H-206;
Eight per cent shall be paid into the homeless services special fund established
pursuant to section 346- ; and
Eight per cent shall be paid into the dwelling unit revolving fund established
pursuant to section 201H-191 for the purposes of funding infrastructure programs in
transit -oriented development areas."
SECTION 7. Statutory material to be repealed is bracketed
and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 3000.
Report Title:
DHS; Affordable Housing; Conveyance Tax; Rates; Exemption;
Homeless Services Fund; Affordable Homeownership Revolving Fund;
Land Conservation Fund; Rental Housing Revolving Fund; Dwelling
Unit Revolving Fund
Description:
Establishes the Homeless Services Special Fund. Allows counties
to apply for matching funds from the Affordable Homeownership
Revolving Fund for certain housing projects. Increases the
conveyance tax rates for certain properties. Establishes
conveyance tax rates for multifamily residential
properties. Establishes new exemptions to the conveyance
tax. Allocates collected conveyance taxes to the Affordable
Homeownership Revolving Fund, Homeless Services Fund and, and
Dwelling Unit Revolving Fund. Amends allocations to the Land
Conservation Fund and Rental Housing Revolving Fund. Effective
7/l/3000. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent
.B. NO.
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. Section 201H-3.1, Hawaii Revised Statutes,, is
2 amended to read as follows:
3 "[+1 $201H-31jg-j Criteria. (a) In administering this
4 chapter and :other laws of the State applicable to the -supplying
5 of housing or the assistance .in obtaining housing, the
6 corporation shall give preference to those applicants most in
1 need of assistance in obtaining housing, in light of the amount
8 of moneys available for the various programs.. In doing so, the
9 corporation shall take into consideration the applicant"s
10 household income and number of dependents; the age of the
11 applicant; the physical disabilities of the applicant or those
12 living with the applicant; whether or not the present housing of
13 the applicant is below standard; whether or not the applicant"s
14 need for housing has arisen'by reason of displacement of the
15 applicant by governmental actions; the,p.roximity between the
16 housing location and the applicant's plaoe of employment;
17 whether the applicant is a state or county employee; whether the
1
Page 2 R NO.
1 applicant is .a returning resident that left the State to attend
2 a university, college, or trade school and has graduated within
3 the past two years; :and other factors as it may deem y pertinent.
4 The corporation may allow households with incomes up to twenty
5 per cent greater than the income on which the maximum sales
6 price was, based to be qualified to purchase a unit
7 (b) For any project developed or administered by the
8 corporation under this chapter, the corporation shall, when
9 feasible, set aside as a matter of preference no fewer
10 than per cent of the available units for state or county
11 employees.
12 (c) The corporation shall:
13 (.1) Determine the order of preferences as outlined in this
14 section and rank all applicants accordingly;
15 (2) Select applicants based on a placation date within the
16 pool of similarly ranked applicants; and
17 (3) Validate the preference status of an applicant before
18 occupancy of an affordable unit,'
19 (d) The corporation may establish additional eligibilit
20 criteria in administrative rules adopted pursuant to
21 chapter 91..
Oil
Page 3
� R. NO.
1 SECTION 2. Statutory material to be repealed is bracketed
2 and stricken... New statutory material is underscored.
3 SECTION 3. This Act shall take effect upon its approval.
4
.INTRODUCED BY
S.B. NO.
Report Title:
HHFDC;, Housing Development Programs; Criteria,; Preferences;
Ranking; Housing Location Proximity; State and County Employees;
Returning Resident Graduates; Reserved Units,- Rules
Description::
Requires the Hawaii Housing Finance and Development Corporation 3
(HHFDC) to consider as a preferenceunder chapter 201H, HRS, the 1
proximity between the housing location and the applicant's place
of employment; whether the applicant is a state or county
employeeei and whether the applicant is a returning resident that
left the State to attend a university; college, or trade school
and has graduated within the past two years.. Requires, for any
project developed or administered by the HHFDC under chapter
201, HRS, the HHFDC to set aside as a matter of preference an
undetermined per cent of available units for state or county
employees, when feasible: Requires HHFDC to determine the order
of preferences and rank applicants a.ccordingly, select
applicants based on application date within the pool of
si.mila.rly ranked applicants, and validate -the preference status
of applicants before occupancy of a unit. Authorizes HHFDC to
6
adopt rules to establish additional eligibility criteria.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent