HOUSE OF REPRESENTATIVES	H.B. NO.	1209
THIRTY-FIRST LEGISLATURE, 2021		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

SECTION 1.  The legislature finds that more non-residents are investing in Hawaii real estate due to the low property tax rates imposed by the counties.  From 2008 to 2015, non-residents purchased approximately twenty-five per cent of the homes sold in the State and roughly forty-seven per cent of all homes sold in the counties of Maui, Kauai, and Hawaii.

The legislature further finds that a constitutional amendment to article VIII, section 3, to give the State the ability to also collect real property taxes will provide the State with greater flexibility and control in its taxation of residents and non-residents.  If the State has the authority in determining real property taxes, then it may allow for the ability to remove other assessed taxes like the personal and corporate income tax.

The purpose of this Act is to require the department of taxation, by January 1, 2026, to suspend and refund certain income tax amounts received or withheld upon the enactment of a state law specifying real property tax amounts, and upon the passage and ratification of a constitutional amendment of article VIII, section 3, authorizing the State to additionally have real property taxing authority.

SECTION 2.  By January 1, 2026, the department of taxation shall suspend and refund personal and corporate income tax amounts received or withheld under chapter 235, Hawaii Revised Statutes; provided that the State enacts a state law specifying real property tax amounts to be levied and assessed by the department of taxation.

     SECTION 3.  This Act shall take effect on July 1, 2050; provided that section 2 of this Act shall take effect upon the ratification of a constitutional amendment of article VIII, section 3, authorizing the State to additionally have real property taxing authority.

 

Report Title:

Income Tax Law; Real Property Tax; DOTAX

 

Description:

By 1/1/2026, requires the department of taxation to suspend and refund certain income tax amounts received or withheld upon the enactment of a state law specifying real property tax amounts. Takes effect upon the ratification of a constitutional amendment authorizing the State to have additional real property taxing authority.  Effective 7/1/2050.  (HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.