HB 604 Hawaii House · 2025 Regular Session

RELATING TO TAX REVENUES.

Summary

Beginning on 1/1/2026, increases transient accommodations tax rates by 1 percentage point. Deposits the increased revenues into the Hawaiian Home General Loan Fund established under the Hawaiian Homes Commission Act, 1920, as amended. Effective 7/1/3000. (HD1)

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 17, 2025 Last action Feb 14, 2025

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What changed between versions

HB604 → HB604_HD1 · 5 edits

MODERATE

This bill amends tax and funding provisions related to Hawaiian homes and transient accommodations. It updates tax rate schedules for resort time share units and transient accommodations, modifies how excess tax revenues are allocated to various state funds, and establishes new conditions for farm loans under the Hawaiian Homes Commission Act. The most significant change is the addition of a new provision directing excess tax revenues from the highest tax rate periods to the Hawaiian Home General Loan Fund, which will support home construction and farm operations.

Scope change

The bill expands the scope of the Hawaiian Home General Loan Fund by adding a new revenue source (excess tax revenues from transient accommodations) and modifies the tax rate schedule for resort time share vacation units to extend certain rates through 2025.

FISCAL

New provision directs excess tax revenues from transient accommodations tax at the highest rate periods (10.25%) to the Hawaiian Home General Loan Fund, providing additional funding for home construction and farm operations.

Modified allocation priorities for transient accommodations tax revenues, adjusting amounts allocated to various special funds and adding new allocation to the special land and development fund.

TIMELINE

Updated tax rate periods for transient accommodations and resort time share units, extending certain rates through December 31, 2025, and establishing new rates beginning January 1, 2026.

REQUIREMENT

Added four new conditions for farm loans under the Hawaiian Homes Commission Act, including income source requirements, loan limits for soil conservation ($20,000), and requirements for recommended farm management practices.

TECHNICAL

Changed the effective date of the Act from July 1, 3000 to an unspecified date, and updated statutory material formatting to indicate repealed and new provisions.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Report adopted; referred to the committee(s) on FIN with Representative(s) Matsumoto, Shimizu voting aye with reservations; Representative(s) Alcos, Garcia, Muraoka, Reyes Oda voting no (4) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).

lower

Feb 14, 2025

Committee

Reported from JHA (Stand. Com. Rep. No. 700), recommending referral to FIN.

lower

Feb 12, 2025

Lower · Passed

The committee on JHA recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 9 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Kahaloa, Perruso, Takayama, Todd; Ayes with reservations: Representative(s) Shimizu; 1 Noes: Representative(s) Garcia; and 1 Excused: Representative(s) Cochran.

lower

Feb 4, 2025

Committee

Reported from TOU/HSG (Stand. Com. Rep. No. 129) as amended in HD 1, recommending passage on Second Reading and referral to JHA.

lower

Jan 30, 2025

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa; Ayes with reservations: none; 1 Noes: Representative(s) Muraoka; and 3 Excused: Representative(s) Cochran, La Chica, Pierick.

lower

Jan 30, 2025

Lower · Passed

The committee on TOU recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Tam, Templo, Holt, Hussey, Ilagan, Todd; Ayes with reservations: Representative(s) Matsumoto; Noes: none; and Excused: none.

lower

Jan 21, 2025

Committee

Referred to TOU/HSG, JHA, FIN, referral sheet 2

lower

Jan 21, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 17, 2025

Introduced

Pending introduction.

lower

9 primary · 0 co-sponsors