HI SB1033

Imposes a 50% excise tax on the fair market value of any newly acquired single-family residence purchased by applicable taxpayers (institutional investors with $50 million or more in assets under management)

Requires applicable taxpayers to divest existing single-family residences over a 10-year phase-out period, reducing permissible holdings by 10% annually until reaching zero; imposes $50,000 penalty per excess unit retained beyond the annual limit

Defines applicable taxpayers as hedge funds, private equity firms, real estate investment funds, and similar institutional asset managers, while exempting 501(c)(3) nonprofits, home builders/rehabilitators, and individuals

Establishes the Housing Downpayment Trust Fund to receive all excise tax revenues, with funds used to provide downpayment assistance to families purchasing homes, prioritizing those buying from divesting institutional investors

Takes effect July 1, 2050 and applies to taxable years beginning after December 31, 2026, with the Hawaii Finance and Housing Corporation required to report annually to the legislature on fund receipts and expenditures