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HOUSE OF REPRESENTATIVES |
H.R. NO. |
170 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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HOUSE RESOLUTION
URGING THE countIES to utilize an empty homeS tax as a means OF ADDRESsING affordable housing IN THE STATE.
WHEREAS, property taxes in the State are among the lowest in the nation at approximately .28 percent; and
WHEREAS, about one fourth of all housing in the State is owned by people who do not reside in the State; and
WHEREAS, low property taxes have benefitted real estate investors, many of whom do not reside in the State and purchase homes and other residential properties as investments or second homes; and
WHEREAS, a significant number of residential investment properties are vacant, which, combined with low property taxes, negatively impacts the housing supply statewide and results in less revenues for the counties and government services; and
WHEREAS, homes and other residential properties that are vacant for extended periods of time negatively impact the State's housing supply by taking housing units out of the housing market and contributing to a scarcity of affordable housing and a prevalence of homelessness in the State; and
WHEREAS, in 2017, the empty homes tax, also known as the vacancy tax, was introduced in Vancouver, British Columbia to help return vacant and under-utilized properties to the market as long-term rental homes for people who live and work in Vancouver and support affordable housing initiatives; and
WHEREAS, under Vancouver's empty homes tax:
(1) Thirty-six percent of properties declared or deemed vacant in 2019 were converted to occupied in 2020;
(2) There was a twenty-six percent reduction in vacant properties from 2017 to 2020; and
(3) $86,600,000 of revenues from the empty homes tax were allocated to support affordable housing initiatives between 2017 and 2020; and
WHEREAS, Vancouver's empty homes tax does not apply to principal residences, homes that qualify for an exemption, or homes rented for at least six months of the year; and
WHEREAS, adopting a tax similar to Vancouver's empty homes tax would help return vacant or under-utilized properties to the State's long-term rental housing inventory and relieve pressure on the State's rental housing market; now, therefore,
BE IT RESOLVED by the House of Representatives of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, that the City and County of Honolulu and the counties of Hawaii, Kauai, and Maui are urged to utilize an empty homes tax, similar to the Vancouver, British Columbia empty homes tax, as a means of addressing affordable housing in the State; and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Mayor and Council Chair of the City and County of Honolulu and the Mayors and Council Chairs of the counties of Hawaii, Kauai, and Maui.
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OFFERED BY: |
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Empty Homes Tax; Vacancy Tax; Counties