Bill Text: HI SB1121 | 2022 | Regular Session | Amended
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2022-04-28 - Conference committee meeting to reconvene on 04-29-22 1:30PM; Conference Room 325. [SB1121 Detail]
Download: Hawaii-2022-SB1121-Amended.html
THE SENATE |
S.B. NO. |
1121 |
THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
Section 1. The legislature finds that lands utilized by the department of Hawaiian home lands to provide housing for native Hawaiians are offered at affordable rates when compared to similar housing available in Hawaii.
The purpose of this Act is to exempt any housing developed by the department of Hawaiian home lands from general excise and use taxes.
Section 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Exemptions for any housing development by
the department of Hawaiian home lands.
(a) There shall be
exempted from the measure of the taxes imposed by this chapter, all gross
proceeds arising from the planning, design, financing, or construction of any
housing development by the department of Hawaiian home lands, as provided in
this section.
(b) The exemption shall be approved by the
department of Hawaiian home lands and shall apply to the gross income derived
by any qualified person from a newly constructed or a moderately or
substantially rehabilitated homestead development that is developed:
(1) Under a
government assistance program approved by the department of Hawaiian home
lands;
(2) Under the
sponsorship of a nonprofit organization providing home rehabilitation or new
homes for qualified families in need of decent, low-cost housing on Hawaiian home
lands;
(3) To provide
affordable rental housing on Hawaiian home lands where at least fifty per cent
of the available units are for households with incomes at or below eighty per
cent of the area median family income, as determined by the United States
Department of Housing and Urban Development; or
(4) By contract or
project developer agreement to provide affordable housing through new
construction or substantial rehabilitation of a homestead development; provided
that:
(A) The
allowable general excise tax and use tax costs shall apply to contracting only
and shall not exceed $30,000,000 per year in the aggregate for all projects
approved and certified by the department of Hawaiian home lands; and
(B) At
least twenty per cent of the available units are for households with incomes at
or below eighty per cent of the area median family income, as determined by the
United States Department of Housing and Urban Development.
(c) The exemption shall apply to housing projects
that are covered by a regulatory agreement with the department of Hawaiian home
lands to ensure the project's continued compliance with the applicable
eligibility requirements in subsection (b), unless exempted by the department
of Hawaiian home lands.
(d) All claims for exemption under this section
shall be filed with and certified by the department of Hawaiian home lands and
forwarded to the department of taxation by the claimant. Any claim for exemption that is filed and
approved shall not be considered a subsidy.
(e) The department of Hawaiian home lands may
establish, revise, charge, and collect a reasonable service fee, as necessary,
in connection with its approvals and certifications of the exemption under this
section. The fees shall be deposited
into the Hawaiian home administration account.
(f) The department of Hawaiian home lands shall adopt
rules pursuant to chapter 91 necessary to carry out the purposes of this section.
(g) For purposes of this section:
"Moderately rehabilitated"
means rehabilitation to upgrade a dwelling unit to a decent, safe, and sanitary
condition, or to repair or replace major building systems or components in
danger of failure.
"Substantially
rehabilitated":
(1) Means the
improvement of a property to a decent, safe, and sanitary condition that
requires more than routine or minor repairs or improvements. It may include but shall not be limited to:
(A) The
gutting and extensive reconstruction of a dwelling unit; or
(B) Cosmetic
improvements coupled with the curing of a substantial accumulation of deferred
maintenance; and
(2) Includes renovation, alteration, or remodeling to convert or adapt structurally sound property to the design and condition required for a specific use, such as conversion of a hotel to housing for elders."
SECTION 3. Section 238-3, Hawaii Revised Statutes, is amended to read as follows:
"§238-3 Application of tax, etc. (a) The tax imposed by this chapter shall not apply to any property, services, or contracting or to any use of the property, services, or contracting that cannot legally be so taxed under the Constitution or laws of the United States, but only so long as, and only to the extent to which the State is without power to impose the tax.
To the extent that any exemption, exclusion, or apportionment is necessary to comply with the preceding sentence, the director of taxation shall:
(1) Exempt or exclude from the tax under this chapter, property, services, or contracting or the use of property, services, or contracting exempted under chapter 237; or
(2) Apportion the gross value of services or contracting sold to customers within the State by persons engaged in business both within and without the State to determine the value of that portion of the services or contracting that is subject to taxation under chapter 237 for the purposes of section 237-21.
(b) The tax imposed by this chapter shall not apply to any use of property, services, or contracting the transfer of which property, services, or contracting to, or the acquisition of which by, the person so using the same, has actually been or actually is taxed under chapter 237.
(c) The tax imposed by this chapter shall be paid only once upon or in respect of the same property, services, or contracting; provided that nothing in this chapter contained shall be construed to exempt any property, services, or contracting, or the use thereof from taxation under any other law of the State.
(d) The tax imposed by this chapter shall be in addition to any other taxes imposed by any other laws of the State, except as otherwise specifically provided herein; provided that if it be finally held by any court of competent jurisdiction, that the tax imposed by this chapter may not legally be imposed in addition to any other tax or taxes imposed by any other law or laws with respect to the same property, services, or contracting, or the use thereof, then this chapter shall be deemed not to apply to the property, services, or contracting, or the use thereof under such specific circumstances, but such other laws shall be given full effect with respect to the property, services, or contracting, or use.
(e) The tax imposed by this chapter shall not apply to any use of property exempted by section 238-4.
(f) The tax imposed by this chapter shall not apply to any use or consumption of aircraft and vessels, the transfer of which aircraft or vessel to, or the acquisition of which by, the person so using or consuming the same, or the rental for the use of the aircraft or vessel, has actually been or actually is taxed under chapter 237.
(g) The tax imposed by this chapter shall not apply to any intoxicating liquor as defined in chapter 244D and cigarettes and tobacco products as defined in chapter 245, imported into the State and sold to any person or common carrier in interstate commerce, whether ocean-going or air, for consumption out-of-state by the person, crew, or passengers on the shipper's vessels or airplanes.
(h) The tax imposed by this chapter shall not apply to any use of vessels constructed under section 189-25 prior to July 1, 1969.
(i)
Each taxpayer liable for the tax imposed by this chapter on property,
services, or contracting shall be entitled to full credit for the combined
amount or amounts of legally imposed sales or use taxes paid by the taxpayer
with respect to the same transaction and property, services, or contracting to
another state and any subdivision thereof, but the credit shall not exceed the
amount of the use tax imposed under this chapter on account of the transaction
and property, services, or contracting.
The director of taxation may require the taxpayer to produce the
necessary receipts or vouchers indicating the payment of the sales or use tax
to another state or subdivision as a condition for the allowance of the credit.
(j) The tax imposed by this chapter shall not apply to any use of property, services, or contracting exempted by section 237-26 or section 237-29.
(k) The tax imposed by this chapter shall not apply to any use of air pollution control facility exempted by section 237-27.5.
(l) The tax imposed by this chapter shall not apply
to use of imported property or services arising from the planning, design,
financing, or construction of any housing development by the department of Hawaiian
home lands."
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
Report Title:
DHHL; Taxation; Housing; General Excise Tax; Use Tax; Exemption
Description:
Exempts housing developed by the department of Hawaiian home lands from general excise and use taxes. 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.