HI HB1209

Requires the Department of Taxation to suspend and refund personal and corporate income tax amounts received or withheld under Chapter 235, Hawaii Revised Statutes, by January 1, 2026.

Suspension and refund of income taxes is conditional upon the State enacting a law specifying real property tax amounts to be levied and assessed by the Department of Taxation.

Suspension and refund is also contingent upon ratification of a constitutional amendment to Article VIII, Section 3, authorizing the State to have real property taxing authority in addition to counties.

The Act takes effect July 1, 2050; however, Section 2 (income tax suspension and refund) takes effect upon ratification of the constitutional amendment regarding state real property taxing authority.

Legislative findings note that non-residents purchased approximately 25% of homes sold statewide from 2008-2015 and 47% in Maui, Kauai, and Hawaii counties, citing low county property tax rates as a factor.