Hawaii House Bill HB1473

Hawaii 2024 Regular Session

• Introduced: 1/25/23
• Refer: 1/30/23

Caption

Relating To Homestead Exemptions.

Impact

The bill mandates that the Legislative Reference Bureau conduct a thorough study to assess the potential for increasing the homestead exemption, particularly as it relates to bankruptcy proceedings. The study will provide comparative analysis against similar states and consider how the exemption applies in different jurisdictions. Furthermore, it proposes to evaluate the fiscal repercussions of any changes made to the current exemption rates on both the state budget and local communities, emphasizing the importance of safeguarding residents in financial distress.

Summary

House Bill 1473 seeks to address the need for a review and possible adjustment of the homestead exemption in Hawaii, a provision that has not seen an update since 1978. The bill arises from concerns over the economic fallout from the COVID-19 pandemic and the subsequent rise in housing costs, which contribute to financial strain for many families in the state. The findings outlined in the bill highlight how, since 1978, the financial landscape has drastically changed, necessitating a re-evaluation of how the homestead exemption is structured under current economic conditions.

Contention

A significant point of discussion surrounding HB1473 may revolve around the implications of increasing the homestead exemption. While proponents argue that an update could provide much-needed financial relief to homeowners facing financial difficulties, it could also raise concerns regarding the potential impact on state revenue. Critics may voice apprehensions that changes to the exemption could encourage higher claims, thereby straining resources in the state, complicating the budget, and creating disparities in how financial aid interacts with local tax systems.