S.B. 1033 Summary

• Establishes an excise tax on asset managers and investment funds with $50 million or more in assets under management that acquire single-family residences, with a tax equal to 50% of the property's fair market value.

• Imposes an additional $50,000 per excess unit tax on applicable taxpayers who fail to reduce their single-family residence holdings according to a nine-year phase-down schedule (90% maximum in year 1, declining to 0% by year 10).

• Creates a Housing Downpayment Trust Fund to receive all excise tax revenues, to be administered by the Hawaii Housing Finance and Development Corporation and used for downpayment assistance programs, with priority given to families purchasing homes sold by taxable entities.

• Requires applicable taxpayers to provide annual reporting on acquisition dates of properties and purchaser certifications confirming whether sales are "disqualified sales" (to corporate buyers or individuals owning other residences), with $20,000 penalties for false or missing reporting.

• Effective July 1, 2050, and applies to taxable years beginning after December 31, 2026.