RELATING TO HOUSING.

Housing Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: NAKAMURA (Introduced by request of another party)
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Hawaii Housing Tax Exemption

This bill exempts the Department of Hawaiian Home Lands from general excise and use taxes when developing homestead lots or housing.

What This Bill Does

Exempts any development of homestead lots or housing for the Department of Hawaiian Home Lands (DHHL) from general excise and use taxes.
Defines 'homestead lot' as a residential, agricultural, or pastoral land awarded to native Hawaiians under specific laws.
Specifies that projects must be approved by DHHL or sponsored by nonprofits providing home rehabilitation or new homes for low-income families.
Requires claims for tax exemption to be filed with and certified by the Department of Hawaiian Home Lands before being forwarded to the Department of Taxation.

Who It Names or Affects

The Department of Hawaiian Home Lands
Developers working on homestead lots or housing projects for DHHL

Terms To Know

Homestead lot: A residential, agricultural, or pastoral land awarded to native Hawaiians under the Hawaiian Homes Commission Act.
Moderate rehabilitation: Improvement of a property that is not considered substantial but goes beyond basic maintenance.

Limits and Unknowns

The bill does not specify how exemptions will be enforced or monitored.
It is unclear what happens if the Department of Hawaiian Home Lands fails to certify claims for exemption properly.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment exempts developments related to homestead lots or housing provided by the Department of Hawaiian Home Lands from general excise and use taxes.

Adds a new section in Chapter 237, Hawaii Revised Statutes, which allows exemptions for planning, design, financing, and construction activities for certain projects involving homestead lots or housing for the Department of Hawaiian Home Lands.
Amends Section 238-3, Hawaii Revised Statutes, to include the exemption created by the new section in Chapter 237.

The amendment specifies that claims for exemption must be filed with and certified by the Department of Hawaiian Home Lands before being forwarded to the Department of Taxation.
The effective date of July 1, 3000, is likely a placeholder or error in the text.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-14 H
Report adopted; referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).
2025-02-14 H
Reported from JHA (Stand. Com. Rep. No. 729), recommending referral to FIN.
2025-02-11 H
The committee on JHA recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 9 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Kahaloa, Perruso, Takayama, Todd, Garcia, Shimizu; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Cochran, Hashem.
2025-02-07 H
Bill scheduled to be heard by JHA on Tuesday, 02-11-25 2:00PM in House conference room 325 VIA VIDEOCONFERENCE.
2025-02-03 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Ward excused (2).
2025-02-03 H
Reported from HSG (Stand. Com. Rep. No. 51) as amended in HD 1, recommending passage on Second Reading and referral to JHA.
2025-01-29 H
The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka, Pierick; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Cochran.
2025-01-27 H
Bill scheduled to be heard by HSG on Wednesday, 01-29-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE.
2025-01-23 H
Referred to HSG, JHA, FIN, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO HOUSING.
DHHL; General Excise Tax Exemption; Use Tax Exemption
Exempts any development of homestead lots or housing for the Department of Hawaiian Home Lands from general excise and use taxes. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1086

HOUSE OF REPRESENTATIVES

H.B. NO.

1086

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO HOUSING
.

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

����
SECTION 1.
�
The legislature finds that homestead lots or
housing developed for the department of Hawaiian home lands awarded to native
Hawaiians are offered at affordable rates when compared to similar housing
opportunities available in Hawaii.
�
The
purpose of this Act is to exempt any development of homestead lots or housing
for the department of Hawaiian home lands from general excise and use taxes.

����
Section
2.
�
Chapter 237, Hawaii Revised Statutes, is
amended

by
adding a new section to be appropriately designated and to read
as follows:

����
"
�237-
�
��
Exemptions
for any development of homestead lots or housing for the department of Hawaiian
home lands.
�
(a)
�
Any amounts related to planning, design,
financing, or construction activities conducted by a qualified person or firm
for a new construction, moderate rehabilitation, or substantial rehabilitation
project for homestead lots or housing for the department of Hawaiian home lands
shall be exempted from the tax imposed by this chapter, including but not
limited to a project developed:

����
(1)
�
Under a government assistance
program approved by the department of Hawaiian home lands;

����
(2)
�
Under the sponsorship of a nonprofit
organization providing home rehabilitation or new homes on Hawaiian home lands
for families qualified under the Hawaiian Home Commission Act, 1920, as
amended, in need of decent, low-cost housing; or

����
(3)
�
To provide affordable rental housing
where at least fifty per cent of the available units are for households with
incomes at or below eighty per cent of the area median family income as
determined by the United States Department of Housing and Urban Development.

����
(b)
�
All claims for exemption under this section
shall be filed with and certified by the department of Hawaiian home lands and
forwarded to the department of taxation by the claimant.

����
(c)
�
For purposes of this section:

����
"Homestead
lot" means a lot of residential, agricultural, or pastoral use to be
awarded pursuant to the Hawaiian Homes Commission Act, 1920, as amended,
including but not limited to on- and off-site infrastructure requirements,
appurtenances, and dwelling units.

����
"Moderate
rehabilitation" shall have the same meaning as defined in section
201H-36(d).

����
"Qualified
person or firm" means any individual, partnership, joint venture,
corporation, association, limited liability partnership, limited liability
company, business, trust, or any organized group of persons or legal entities,
or any combination thereof, that possesses all professional or vocational
licenses necessary to do business in the State.

����
"Substantial
rehabilitation" shall have the same meaning as defined in section
201H-36(d).
"

����
SECTION
3.
�
Section 238-3, Hawaii Revised
Statutes, is amended by amending subsection (j) to read as follows:

����
"(j)

�
The tax imposed by this chapter shall
not apply to any use of property, services, or contracting exempted by section
237-26 [
or
]
,
section 237-29[
.
]
, or section 237-
��
.
"

����
SECTION
4.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
5.
�
This Act, upon its approval, shall take
effect on January 1, 2026.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

DHHL;
General Excise Tax Exemption; Use Tax Exemption

Description:

Exempts
any development of homestead lots or housing for the Department of Hawaiian
Home Lands from general excise and use taxes.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.