STAND. COM. REP. NO. 2834

Honolulu, Hawaii

RE: S.B. No. 3333

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3333, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to provide real property tax relief to buyers of affordable housing.

More specifically, this measure requires each county to apply any applicable real property tax exemptions, reduced assessments, or tax classifications for any affordable housing subject to income, resale, or occupancy restrictions as of the date a qualifying owner takes title to the affordable housing for the upcoming tax period, consistent with county procedures.

Your Committee received written comments in support of this measure from the Hawaii Association of REALTORS.

Your Committee received written comments in opposition to this measure from the County of Maui Department of Finance and County of Kauai Department of Finance.

Your Committee received written comments on this measure from the City and County of Honolulu Department of Budget and Fiscal Services and Tax Foundation of Hawaii.

Your Committee finds that purchasers of income‑, resale‑, or occupancy‑restricted affordable housing often face a delay between taking title and receiving appropriate real property tax relief, resulting in unnecessary tax burdens during that interim period. Your Committee believes that aligning real property tax exemptions, reduced assessments, or tax classifications with the date of transfer supports long‑term affordability, promotes homeownership opportunities for low‑ and moderate‑income households, and advances state and county housing policy goals.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3333, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair