THE SENATE

S.B. NO.

1201

TWENTY-EIGHTH LEGISLATURE, 2015

 

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 Hawaii faces a historical and growing shortage of housing units and rapidly rising rents, presenting a serious problem for a substantial portion of Hawaii residents who live in residential housing.  Moreover, rent increases are exacerbated by speculation in the purchase and sale of existing residential housing units by local and foreign real estate and development investors.

     The legislature further finds that rent increases escalate rates of homelessness in the State, and Hawaii now leads the country in the number of individuals and families that are unsheltered.  Data indicates that approximately 262,000 people in Hawaii, or 25 per cent of the State's population, are at risk for homelessness.

     The housing shortage and speculative nature of the real estate industry present a clear and imminent threat to the public health and welfare of Hawaii's residents, especially the poor, minorities, students, young families, and senior citizens.  Therefore, the purpose of this Act is to alleviate the hardship faced by individuals and families living in residential housing by creating a tax incentive for landlords who provide rental units for persons earning below 80 per cent of the area median income.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237‑    Exemption for rental income; affordable rental units.  (a)  There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter, all of the gross proceeds received by an owner or lessor from the leasing of real property to persons earning below 80 per cent of the area median income."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to gross income or gross proceeds received after June 30, 2015.

 

INTRODUCED BY:

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Report Title:

Tax Incentive; Affordable Rental Units

 

Description:

Establishes a tax incentive for landlords who provide rental units for persons earning below 80 per cent of the area median income.

 

 

 

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