RELATING TO THE CONVEYANCE TAX.

SB2379

THE SENATE

S.B. NO.

2379

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the conveyance tax
.

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

����
SECTION
1
.
�
Section 201H-191, Hawaii Revised Statutes, is
amended to read as follows:

����
"�201H-191
�
Dwelling unit revolving fund.
�
(a)
�

There is created a dwelling unit revolving fund.
�
The [
funds appropriated for the purpose of
the dwelling unit revolving fund and all moneys received or collected by the
corporation for the purpose of the revolving fund
]
following
shall
be deposited [
in
]
into
the revolving fund[
.
]
:

����
(1)
�
Funds appropriated for the purpose
of the dwelling unit revolving fund;

����
(2)
�
A portion of conveyance taxes
pursuant to section 247‑7(3); and

����
(3)
�
All moneys received or collected by
the corporation for the purpose of the revolving fund.

����
(b)
�
The proceeds in the revolving fund shall be
used:

����
(1)
�
To reimburse the general fund to pay
the interest on general obligation bonds issued for the purposes of the
revolving fund;

����
(2)
�
For necessary expenses in administering
housing development programs, regional state infrastructure programs, and the
government employee housing program pursuant to part V; and

����
(3)
�
To carry out the purposes of housing
development programs, regional state infrastructure programs, and the
government employee housing program pursuant to part V, including but not
limited to the expansion of community facilities and regional state infrastructure
constructed in conjunction with housing and mixed-use transit-oriented
development projects, permanent primary or secondary financing, and
supplementing building costs, federal guarantees required for operational
losses, and all things required by any federal agency in the construction and
receipt of federal funds or low-income housing tax credits for housing
projects.

����
[
(b)
]

(c)
�
Subject to the requirements
of subsection [
(a),
]
(b),
proceeds in the revolving fund may be
used to:

����
(1)
�
Establish and operate regional state
infrastructure subaccounts pursuant to section 201H-191.5; and

����
(2)
�
Administer, implement, and finance the
government employee housing program pursuant
to
part V."

����
SECTION

2
.
�
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:

����
(1)
�
Ten per cent or $5,100,000, whichever is less,
shall be paid into the land conservation fund established pursuant to section
173A-5; [
and
]

����
(2)
�
Fifty per cent [
or $38,000,000, whichever
is less,
] shall be paid into the rental housing revolving fund established [
by
]

pursuant to
section 201H-202[
.
]
; and

����
(3)
�
Twenty per cent shall be paid into the
dwelling unit revolving fund established pursuant to section 201H‑191.
"

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

����
SECTION
4.
�
This Act shall take effect upon its
approval.

INTRODUCED BY:

_____________________________

Report Title:

Conveyance
Tax; Dwelling Unit Revolving Fund; Rental Housing Revolving Fund; Allocations

Description:

Allocates
twenty per cent of conveyance tax revenues to the Dwelling Unit Revolving
Fund.
�
Repeals the annual cap amount on
the allocation of conveyance tax revenues to the Rental Housing Revolving Fund.

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