HI HR170

Urges the City and County of Honolulu and the counties of Hawaii, Kauai, and Maui to implement an empty homes tax similar to Vancouver, British Columbia's vacancy tax to address affordable housing shortages.

Hawaii's property tax rate of approximately 0.28 percent is among the lowest in the nation, and about one-fourth of all housing in the state is owned by non-residents, benefitting real estate investors.

Vacant residential investment properties reduce housing supply, contribute to affordable housing scarcity and homelessness, and result in decreased county revenues and government services.

Vancouver's empty homes tax (implemented in 2017) converted 36 percent of vacant properties to occupied in 2020, reduced vacant properties by 26 percent from 2017 to 2020, and generated $86,600,000 for affordable housing initiatives between 2017 and 2020.

Vancouver's tax exempts principal residences, qualifying exempt properties, and homes rented for at least six months per year.