HOUSE OF REPRESENTATIVES

H.B. NO.

357

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

rELATING TO GENERAL EXCISE TAX EXEMPTIONS.

 

 

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

 


     SECTION 1. The purpose of this Act is to incentivize affordable housing by providing a general excise tax exemption for qualified landlords who provide residential rental units to persons earning less than or equal to fifty 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)  All gross income received by a qualified owner or lessor of a residential dwelling unit that has been leased to an eligible low-income household, with income at or below fifty per cent of the area median income as determined by the United States Department of Housing and Urban Development, and certified or approved under section 356D-  , Hawaii Revised Statutes, shall be exempt from general excise taxes.

     (b)  The director of taxation and the Hawaii public housing authority shall adopt rules pursuant to chapter 91 for the purpose of this section, including any time limitation for the exemptions."

     SECTION 3.  Chapter 356D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§356D-    Exemption from general excise taxes.  (a)  In accordance with section 237-  , Hawaii Revised Statutes, the authority may approve and certify for exemption from general excise taxation any qualified owner or lessor who receives gross income from the leasing of a residential dwelling unit to an eligible low-income household.

     (b)  All claims for exemption under this section shall be filed with and certified by the authority and forwarded to the department of taxation.

     (c)  The authority may establish, revise, charge, and collect a reasonable service fee, as necessary, in connection with its approvals and certifications under this section."

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval and shall apply to gross income or gross proceeds received after June 30, 2017.


 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Relating to General Excise Tax exemptions. 

 

Description:

Provides for a general excise tax exemption on rental income for qualified landlords who provide residential rental units to persons earning less than or equal to fifty per cent of the area median income.

 

 

 

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