Hawaii House Bill HCR150

Hawaii 2025 Regular Session

• Introduced: 3/7/25
• Refer: 3/14/25

Caption

Requesting The Department Of Taxation To Establish A Vacant Homes Surcharge Task Force To Research And Report On The Impacts And Implementations Of A General Excise Tax Surcharge On Vacant Homes.

Impact

The resolution highlights significant concerns regarding the housing shortage in Hawaii, particularly the complicating factors introduced by vacant homes that neither contribute to the local economy nor provide housing for residents. As infrastructure improvements around these properties enhance their market value, taxpayers end up indirectly subsidizing these second home purchases without receiving corresponding benefits. Notably, the proposed surcharge could encourage property owners to either occupy these homes or offer them as long-term rentals, thereby potentially increasing the housing supply and affording residents more access to affordable options.

Summary

HCR150 is a House Concurrent Resolution from the 2025 legislative session that requests the establishment of a task force by the Department of Taxation. The primary objective of this task force is to research and evaluate the implications and feasibility of instituting a general excise tax surcharge on vacant homes in Hawaii. The resolution addresses the increasing trend of residential properties being purchased as second homes and predominantly left unoccupied, which has adverse effects on local communities and the housing market. Through this initiative, the bill aims to ascertain effective strategies for implementing such a surcharge and its overall economic impact.

Contention

There are critical considerations surrounding the proposed excise tax surcharge, including the necessity for a comprehensive examination of enforcement mechanisms, economic ramifications, and possible exemptions. While proponents may view this as a step towards easing the housing crisis by expanding the rental market, opponents may raise concerns over its implications for property rights and the broader impacts it could have on the real estate market. The dialogue generated by HCR150 reflects ongoing debates about how to balance tax measures with the need for effective housing solutions.