Urging The Department Of Taxation, In Consultation With The Department Of Hawaiian Home Lands, To Conduct A Feasibility Study On Providing Tax Breaks To Individuals Who Sell Property To Native Hawaiians On The Department Of Hawaiian Home Lands Waitlist.
The resolution points out alarming statistics that indicate native Hawaiians comprise a substantial portion of the state's homeless population. The report by the U.S. Department of Housing and Urban Development indicates that as of 2022, native Hawaiians made up 44% of the state's homeless population, emphasizing the urgent need for affordable housing solutions. By analyzing potential tax breaks for property sellers, the bill aims to incentivize property transactions that could benefit native Hawaiians currently on a lengthy homestead waitlist, which is approximated at 28,700 applicants.
House Resolution 178 (HR178) urges the Department of Taxation, in collaboration with the Department of Hawaiian Home Lands, to conduct a feasibility study regarding the provision of tax breaks to individuals selling property to native Hawaiians who are on the Hawaiian Home Lands waitlist. This resolution arises in response to the pressing housing issues faced by native Hawaiians, who have been documented to stay disproportionately affected by homelessness in Hawaii, with a significant number of them waiting for homestead properties from the Department of Hawaiian Home Lands.
Although HR178 serves to address vital housing concerns, it could also lead to discussions regarding the long-term impacts of such tax incentives on property values, market behavior, and the overall effectiveness of tax breaks as a solution to homelessness. Critics may argue that while tax incentives can encourage property sales to native Hawaiians, they are not a comprehensive solution to the complex socio-economic issues faced by these communities. The effectiveness of this feasibility study will thus depend on the thorough assessment of housing availability and the potential legal implications of any proposed tax legislation.