| 47 | | - | 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. |
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| 47 | + | 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 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 for 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 project 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; (3) 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; or (4) By contract or project developer agreement to provide affordable housing through new construction or substantial rehabilitation; 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 department of Hawaiian home lands administration account. (f) 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. New statutory material is underscored. SECTION 4. This Act shall take effect on July 1, 2050. |
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