Hawaii-2017-HCR169-Introduced

WHEREAS, Hawaii's high cost of living, as well as the regressive nature of the general excise tax, serve as impediments for local residents who seek to purchase their first home; and

WHEREAS, because of the challenges involved in becoming homeowners, many state residents are unable to take advantage of Hawaii's homeowner-friendly atmosphere, which includes having the nation's lowest real property taxes and reliable appreciation in real property values; and

WHEREAS, those reaping the benefits of real property ownership are often affluent investors based outside of the State who do not share in the difficulties faced by local residents and who, instead, are focused on their desire to make profits, rather than in making Hawaii their home; and

WHEREAS, such disadvantages spur a significant percentage of the population to depart Hawaii permanently for other locations, thus causing a negative impact on the state economy; and

WHEREAS, in order to address the economic impact of this problem, the State should consider a reformation of the current tax system, with respect to real property taxes and the general excise tax; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-ninth Legislature of the State of Hawaii, Regular Session of 2017, the Senate concurring, that the Department of Business, Economic Development, and Tourism is requested to convene an Economic Development and Tax Reform Working Group (Working Group) to study the economic outcome of:

(1) Transferring the authority to tax real property back to the State;

(2) Allocating a portion of general excise tax revenues to the counties; and

(3) Adjusting the State's personal income tax structure to ease the economic burden on resident taxpayers; and

BE IT FURTHER RESOLVED that, as part of its study, the Working Group is requested to:

(1) Determine the following:

(A) How real property tax revenues are currently allocated to fund county services; and

(B) How all state tax revenues are currently allocated to fund government services; and

(2) Study the feasibility and economic impact of establishing tax benefits, to be claimable by state residents, for the purpose of offsetting real property taxes; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism is requested to include in the Working Group:

(1) The Director of Business, Economic Development, and Tourism, or the director's designee;

(2) The Director of Taxation, or the Director's designee;

(3) The Director of Finance, or the Director's designee;

(4) A member representing each county, to be appointed by the Mayor of each respective county;

(5) A representative of The Chamber of Commerce Hawaii;

(6) A representative of the Economic Research Organization at the University of Hawaii;

(7) A member appointed by the Speaker of the House of Representatives; and

(8) A member appointed by the Senate President; and

BE IT FURTHER RESOLVED that the Director of Business, Economic Development, and Tourism, or the Director's designee, is requested to serve as chairperson of the Working Group; and

BE IT FURTHER RESOLVED that no member shall be made subject to chapter 84, Hawaii Revised Statutes, solely because of that member's participation as a member of the Working Group; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism is requested to provide administrative support to the Working Group; and

BE IT FURTHER RESOLVED that the Working Group is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2018; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism, Director of Finance, Director of Taxation, Speaker of the House of Representatives, Senate President, Mayor of each county, Executive Director of the Economic Research Organization at the
University of Hawaii, and Chair of the Board of Directors of The Chamber of Commerce Hawaii.

	OFFERED BY:	_____________________________

Report Title:

Real Property Tax; General Excise Tax; Economic Development; Working Group

HOUSE OF REPRESENTATIVES	H.C.R. NO.	169
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII