Hawaii Senate Bill SCR211

Hawaii 2022 Regular Session

• Introduced: 3/11/22
• Refer: 3/16/22

Caption

Urging The Counties To Utilize An Empty Homes Tax As A Means Of Addressing Affordable Housing In The State.

Impact

By encouraging local governments to adopt a similar tax, SCR211 aims to reintegrate vacant or under-utilized properties into Hawaii's long-term rental market. This could alleviate the pressure on an already strained housing supply, where scarcity has contributed to growing homelessness in the state. Should the counties take up this resolution, it could shift property usage policies to be more focused on facilitating residential occupancy rather than investment speculation.

Summary

SCR211 is a Senate Concurrent Resolution that urges the counties of Hawaii to implement an empty homes tax as a strategy to combat the issues surrounding affordable housing in the state. Hawaii has one of the lowest property tax rates in the nation, which has inadvertently fostered a market where a significant portion of housing is owned by non-residents as investments, resulting in many homes remaining unoccupied. The bill draws inspiration from Vancouver's successful implementation of the empty homes tax, which led to a notable reduction in vacant properties and increased revenue for affordable housing initiatives.

Contention

There may be some contentious aspects of implementing an empty homes tax in Hawaii. Critics might argue that such taxes could be detrimental to real estate investors who contribute to the local economy, even if they do not reside in Hawaii. Additionally, there might be concerns regarding the fairness and effectiveness of the tax in genuinely increasing the availability of affordable housing, especially if exemptions could be exploited. The resolution does not impose binding obligations on the counties but serves as a significant recommendation from the legislature.