HB 1055 Summary

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

• Exemption applies to planning, design, financing, and construction activities for projects developed for the department, under government assistance programs, by nonprofits providing affordable housing, or providing rental housing with at least 50% of units affordable to households earning at or below 80% of area median family income.

• Requires exemption claims to be filed with and certified by the Department of Hawaiian Home Lands, then forwarded to the Department of Taxation, and establishes that department authority to charge reasonable service fees deposited into the Hawaiian Home Operating Fund.

• Defines "homestead lot" as residential, agricultural, or pastoral use property under the Hawaiian Homes Commission Act, 1920, and establishes definitions for "moderately rehabilitated" and "substantially rehabilitated" properties.

• Effective January 1, 2024.