Bill Text: HI SB2593 | 2010 | Regular Session | Amended
Bill Title: Housing Projects; GET Exemptions; Period Review
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2010-04-21 - (S) Conference committee meeting to reconvene on 04-23-10 2:30PM in conference room 329. [SB2593 Detail]
Download: Hawaii-2010-SB2593-Amended.html
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THE SENATE |
S.B. NO. |
2593 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that section 237‑29, Hawaii Revised Statutes, authorizes the Hawaii housing finance and development corporation (HHFDC) to certify or approve housing projects in the state for a general excise tax exemption. The legislature further finds that HHFDC has adopted administrative rules to set eligibility criteria and application procedures for general excise tax exemptions and to require documentation from claimants showing that the housing projects meet criteria necessary for an exemption. However, upon certification of housing projects by HHFDC, the legislature finds that periodic reviews are necessary to ensure that a claimant's housing projects actually meet, or continue to meet all eligibility criteria to receive or retain a general excise tax exemption.
The purpose of this Act is to require the department of taxation to perform periodic reviews of housing projects certified for a general excise tax exemption.
SECTION 2. Section 201H-36, Hawaii Revised Statutes, is amended to read as follows:
"[[]§201H-36[]]
Exemption from general excise taxes. (a) In accordance with section
237-29, the corporation may approve and certify for exemption from general
excise taxes any qualified person or firm involved with a newly constructed, or
moderately or substantially rehabilitated project:
(1) Developed under this part;
(2) Developed under a government assistance program approved by the corporation, including but not limited to the United States Department of Agriculture 502 program and Federal Housing Administration 235 program;
(3) Developed under the sponsorship of a private nonprofit organization providing home rehabilitation or new homes for qualified families in need of decent, low-cost housing; or
(4) Developed by a qualified person or firm to provide affordable rental housing 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, of which at least twenty per cent of the available units are for households with incomes at or below sixty per cent of the area median family income as determined by the United States Department of Housing and Urban Development.
(b) All claims for exemption under this section shall be filed with and certified by the corporation and forwarded to the department of taxation. Any claim for exemption that is filed and approved, shall not be considered a subsidy for the purpose of this part.
(c) The department of taxation shall conduct periodic reviews of all housing projects for which a claimant has received a general excise tax exemption under this section. Each periodic review shall:
(1) Occur not less than once every three years following the close of the taxable year for which the claimant received a general excise tax exemption; and
(2) For each taxable year for which the claimant received a general excise tax exemption, determine whether the housing project met eligibility criteria under this section and other applicable laws and rules.
[(c)] (d) For the purposes of
this section:
"Moderate rehabilitation" 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.
"Substantial rehabilitation":
(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 is not limited to the gutting and extensive reconstruction of a dwelling unit, or 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.
[(d)] (e) The corporation may
establish, revise, charge, and collect a reasonable service fee, as necessary,
in connection with its approvals and certifications under this section. The
fees shall be deposited into the dwelling unit revolving fund.
(f) The corporation shall adopt rules pursuant to chapter 91 that include penalties for every taxable year in which a claimant receives a general excise tax exemption under this section without meeting or continuing to meet the appropriate eligibility criteria."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2020.
Report Title:
Housing Projects; GET Exemptions; Period Review
Description:
Requires Department of Taxation to periodically review housing projects certified for a general excise tax exemption to determine whether the projects met eligibility criteria. Requires Hawaii Housing Finance and Development Corporation to adopt rules including penalties for non-compliance with exemption criteria. Effective July 1, 2020. (SB2593 HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
