Report Title:

Affordable Housing

Description:

Requires 25% of general excise taxes collected for rental of residential dwelling units other than transient accommodations to be deposited into the rental housing trust fund for affordable housing. Increases the percentage of the conveyance tax collected and deposited into the rental housing trust fund from 25% to 50%.

HOUSE OF REPRESENTATIVES

H.B. NO.

1571

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HOUSING.

 

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

SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237-    Taxes paid on the rental of residential rental dwellings other than transient accommodations; disposition. (a) Twenty-five per cent of all taxes paid under this chapter for the rental of residential rental dwellings other than transient accommodations shall be deposited into the rental housing trust fund under section 201G-432.

(b) The department shall adopt rules in accordance to chapter 91 and create forms necessary to effectuate this section.

For the purposes of this section, "residential rental dwellings other than transient accommodations" means the furnishing of a room, apartment, suite, house, or similar dwelling that is customarily occupied by a tenant for more than one hundred eighty consecutive days for each letting by a homeowner, hotel, apartment hotel, motel, condominium property regime or apartment as defined in chapter 514A, cooperative apartment, or rooming house that provides living quarters, or sleeping accommodations, or other place in which lodgings are regularly furnished to tenants for consideration."

SECTION 2. Section 201G-432, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The following may be deposited into the fund: appropriations made by the legislature, revenues from the rental of residential rental dwellings other than transient accommodations as provided in section 237- , private contributions, repayment of loans, interest, other returns, and moneys from other sources."

SECTION 3. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"§237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

(1) The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund;

(2) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund; [and]

(3) The sum from all general excise tax revenues realized by the State that represents twenty-five per cent of all taxes paid under this chapter for the rental of residential rental dwellings other than transient accommodations shall be deposited into the rental housing trust fund under section 201G-432; and

[(3)] (4) A sum, not to exceed the amount necessary to meet the obligations of the integrated tax information management systems performance-based contract may be retained and deposited in the state treasury to the credit of the integrated tax information management systems special fund. The sum retained by the director of taxation for deposit to the integrated tax information management systems special fund for each fiscal year shall be limited to amounts appropriated by the legislature. This paragraph shall be repealed on July 1, 2005."

SECTION 4. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year, [twenty-five] fifty per cent shall be paid into the rental housing trust fund established by section 201G-432 and twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources after joint consultation with the forest stewardship committee and the natural area reserves system commission in the following priority:

(1) To natural area partnership and forest stewardship programs;

(2) Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners; and

(3) The youth conservation corps established under chapter 193."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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