HI HB292

Requires the Department of Taxation to suspend and refund personal and corporate income tax amounts received or withheld by January 1, 2027, contingent upon enactment of state law specifying real property tax amounts and ratification of a constitutional amendment authorizing state real property taxing authority.

Establishes legislative intent to eliminate personal and business income taxes while offsetting revenue loss through real property taxes.

Plans to eventually double homeowner and senior exemptions on real property taxes to reduce overall tax burden on local residents.

Contingent on passage of a related House Bill and ratification of an amendment to Hawaii Constitution Article VIII, Section 3, to grant the State real property taxing authority currently exclusive to counties.

Notes that from 2008 to 2015, non-residents purchased approximately 25 percent of homes statewide and 47 percent in Maui, Kauai, and Hawaii counties due to low county property tax rates.