HONOLULU (HawaiiNewsNow) – A new proposal to solve Hawaii’s affordable housing crisis by going to non-residents has failed.
Lawmakers now have until the end of the week to come up with another idea. Or – they have to wait until next year.
Senate Bill 34 it was postponed on Tuesday and was declared unconstitutional.
“Today was a rough day because man, I’m telling you, yeah, it’s emotional, a lot of work. And that’s what people really want. We just have to find a way,” said Sen. Brenton Awa, (R) Kaneohe, Kahalu’u through Laie, Kahuku to Mokuleia, Schofield Barracks, Camp Kunya.
Ava’s idea was to go after it Hawaii Real Estate Tax Act. This means that 7.25% of all profits earned by non-residents on Hawaii real estate must go to the state. Ava wanted 75 percent of the profit to go to the state.
However, the tax director said on Tuesday that this will not work in the end.
“This calls into question some legal issues. Every time it’s different with locals than non-residents,” said Gary Suganuma.
“I hate to say this because I’m pushing local people here and I don’t care who tells me it’s unconstitutional, you can’t do it. But we push, push push, push, and what do we understand? Well, shooting, that’s basically the rules we live under,” Ava said.
Before deciding on a delayMany certificates were issued in support of this measure.
“One of the biggest drivers of homelessness and evictions that I’ve seen working at Hope Services, especially during the pandemic, has been the influx of public buyers from purchasing properties, driving up prices and displacing residents,” said Kristen Allis, Hope Services Hawaii Director of Communications. society
“I’m excited to see a bill that finally has serious implications for those looking to use Hawaii’s limited real estate market as an investment in a car to make money,” Alice said.
Ava and other supporters have until the end of the week to come up with an alternative plan or wait until next year.
“You have ideas, send them because we have a short time until Friday. We need an alternative plan to hear this thing,” said Ava.
The Attorney General’s Office said it is currently discussing the bill with Senator Ava.
“The Attorney General’s Department’s role in the legislative process is to review bills for potential legal issues and advise the legislature accordingly,” said Nathan Chee, Deputy Attorney General for the Division of Taxation and Charities.
Copyright 2023 News Hawaii Now. All rights reserved.