HI HCR185

Urges the Governor and Honolulu city leaders to collaborate with the Legislature to develop a plan providing tax incentives that favor local residents over out-of-state and foreign investors in Hawaii's housing market.

Identifies barriers to homeownership for local residents including Hawaii's high cost of living, regressive general excise tax, current income tax structure, and high property values dominated by outside investors.

Notes that Hawaii's "brain drain" problem is exacerbated by these disadvantages, with Honolulu ranking fourth nationally for residents departing to other locations.

Suggests potential solutions including a state refundable tax credit for local residents, graduated property tax rates based on assessed value and ownership type, and review of interactions between general excise, income, and property tax rates.

Directs transmission of the resolution to the Governor, Mayor of Honolulu, and all Honolulu City Council members.