Report Title:

Counties; Real Property Tax; Non-resident Residential Property Owners

 

Description:

Requires counties to add a surtax to the real property taxes paid by non-resident owners of residential properties.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1872

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to taxes.

 

 

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

 


     SECTION 1.  The legislature finds that the ownership of residential properties in the State by non-residents:

     (1)  Increases land speculation in the residential sector, leading to spiraling high prices and attendant high rents for housing in the State;

     (2)  Makes it more competitive and therefore, difficult for young local residents to purchase their own homes; and

     (3)  Permits, in many cases, the absentee owner to avoid paying income and general excise taxes to the State while the residential property still consumes local infrastructure and public services at a cost to local residents.

     The purpose of this Act is to impose a surtax on the real property taxes that are levied on any residential property that is owned by a non-resident of the State.

     SECTION 2.  Each county shall charge a surtax of    per cent of the real property taxes it levies on all residential properties within its jurisdiction that are owned by non-residents of the State.

     SECTION 3.  The surcharge imposed by section 2 shall be levied on tax years starting after December 31, 2007.

     SECTION 4.  This Act shall take effect on July 1, 2007.

 

INTRODUCED BY:

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