Report Title:

Real Estate Transaction Anti-Speculation Tax

Description

Imposes an anti-speculation tax of 20% on profits from sale of residential properties within two years of purchase, to be deposited into the state low income housing revolving fund.

THE SENATE

S.B. NO.

2329

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO REAL ESTATE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The Hawaii Revised Statutes is amended by adding a new section to be appropriately designated and to read as follows:

"§   -   Anti-speculation real estate tax. (a) There shall be assessed, levied, and collected an anti-speculation real estate tax of twenty per cent of the profit from the sale of a residential property by an individual or business entity selling the property if the sale occurs within two years of the date the property was bought by that same individual or entity. The tax shall be payable by the seller.

(b) An individual seller or sellers may request and be granted an exemption from subsection (a) if the sale was prompted by a significant and demonstrable personal financial crisis, such as divorce or death, or due to military relocation.

(c) The anti-speculation real estate tax shall be administered and collected by the department of taxation, including implementing procedures and forms for collection of the tax and collection and enforcement of the tax. All proceeds from the tax shall be payable into the state low income housing revolving fund under section 201G-45. The department of taxation shall adopt rules pursuant to chapter 91 as may be necessary to implement this section.

(d) For purposes of this section, "profit" means the difference between the gross amount of the sale of the residential property that is the subject of the tax and the purchase price of that property by the seller."

SECTION 2. Section 201G-45, Hawaii Revised Statutes, is amended to read as follows:

"§201G-45 [[]State low income housing revolving fund.[]] The director of finance shall establish a revolving fund to be known as "the state low income housing revolving fund". Notwithstanding any law to the contrary, moneys received by the corporation under or pursuant to this subpart[,] and pursuant to section    -  , including refunds, reimbursements, rentals, fees, and charges received from tenants, shall be deposited in the state low income housing revolving fund. Except as otherwise provided in this chapter, the state low income housing revolving fund may be expended by the corporation for any and all of the purposes of this subpart, including, without prejudice to the generality of the foregoing, the expenses of management, operation, and maintenance of state low income housing, including but not limited to the cost of insurance, a proportionate share of the administrative expenses of the corporation, and the cost of repairs, equipment, and improvement; the acquisition, clearance, and improvement of property; the construction and reconstruction of building sites; the construction, reconstruction, repair, remodeling, extension, equipment, and furnishing of any housing project; the development and administration of any housing project; the payment of rentals; and administration and other expenses."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2004, and shall apply to all properties whose contracts for sale are entered into after that date.

INTRODUCED BY:

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