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SB 1405

RELATING TO HOUSING.

2025 Regular Session Introduced by Ron Kouchi

Bill SB 1405 exempts certain housing projects for Native Hawaiians from General Excise and Use Taxes, aiming to boost affordable housing development in Hawaii.

Carried over to 2026 Regular Session.
#dhhl #generalexcisetaxexemption #reports #usetaxexemption
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Bill Summary · SB 1405

Summary of Bill SB 1405: Relating to Housing

Overview

Bill SB 1405 aims to address housing issues in Hawaii by providing specific exemptions related to the General Excise Tax and Use Tax for the Department of Hawaiian Home Lands (DHHL). The bill is designed to enhance housing opportunities for Native Hawaiians and streamline processes associated with housing development.

Key Provisions

  • General Excise Tax Exemption: The bill proposes an exemption from the General Excise Tax for certain transactions related to housing projects under the DHHL. This exemption is intended to reduce the financial burden on developers and facilitate the construction of housing for Native Hawaiians.

  • Use Tax Exemption: Similar to the General Excise Tax exemption, the bill includes provisions for a Use Tax exemption for materials and services used in DHHL housing projects. This aims to lower costs and encourage more development in this sector.

  • Reporting Requirements: The bill mandates the DHHL to submit reports detailing the impact of these tax exemptions on housing development. This will help in assessing the effectiveness of the measures and inform future legislative actions.

Affected Parties

  • Native Hawaiians: The primary beneficiaries of this bill are Native Hawaiians seeking housing opportunities through the DHHL. The exemptions are designed to make housing more accessible and affordable.

  • Developers and Contractors: Those involved in the construction and development of housing projects for the DHHL will benefit from reduced tax liabilities, potentially leading to increased investment in housing projects.

  • State Revenue: While the bill provides tax exemptions, it may also impact state revenue from General Excise and Use Taxes. The long-term benefits of increased housing availability may offset initial revenue losses.

Legislative Timeline

  • Introduced: January 21, 2025
  • First Reading: January 23, 2025
  • Public Hearing: Scheduled for February 4, 2025
  • Committee Recommendations:
    • Passed with amendments by HWN on February 4, 2025
    • Passed with amendments by HOU on February 4, 2025
  • Second Reading: Passed on February 13, 2025, with further amendments (SD 1)
  • Referral to WAM: Following the Second Reading, the bill was referred to the Ways and Means Committee (WAM) for further consideration.

Related Legislation

  • HB 1086: This bill has a companion measure in the House, indicating a coordinated effort to address similar housing issues through both chambers of the legislature.

Conclusion

SB 1405 represents a significant step towards improving housing conditions for Native Hawaiians by providing essential tax exemptions that could stimulate development. The bill's progress through the legislative process reflects a commitment to addressing housing challenges in Hawaii.

Compiled from official sources — confirm details with the bill’s official record.

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