SB 123 Hawaii Senate · 2026 Regular Session

RELATING TO TAXATION.

SB 123 eliminates a tax deduction for home mortgage interest on second homes under Hawaii's income tax law. This change directly affects Hawaii residents who currently claim this deduction for properties not used as their primary residence. The bill requires the state to submit annual reports to the Legislature detailing the deduction's impact. These provisions represent a specific policy change to Hawaii's tax code, removing a financial benefit for second-home owners.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 10, 2025 Last action Dec 8, 2025

Maddy AI version diff · 1 comparison

What changed between versions

SB123 → SB123_SD1 · 3 edits

MINOR

This bill amends SB 123 to update its metadata and formatting to reflect its status as a Senate Draft 1 (SD1). The substantive policy content regarding the elimination of the home mortgage interest deduction for second homes remains unchanged, but the document now includes specific reporting deadlines for future legislative sessions and updated technical identifiers.

Scope change

The bill's scope remains focused on eliminating the home mortgage interest deduction for second homes under Hawaii income tax law, with no changes to the eligibility criteria or the core tax provision itself.

TECHNICAL

Updated bill metadata, including changing the bill type from 'SB' to 'Bill SD' and updating revision numbers and timestamps to reflect the Senate Draft 1 stage.

Changed the section numbering sequence in the text body, shifting the reporting requirement to Section 3 and the effective date provision to Section 5.

REQUIREMENT

Added a specific note '(SD1)' to the bill description to indicate the current draft version.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 10, 2025

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 10, 2025

Committee

Reported from HOU (Stand. Com. Rep. No. 146) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Jan 28, 2025

Upper · Passed

The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 4 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.

upper

Jan 22, 2025

Upper · Passed

The committee(s) on HOU has scheduled a public hearing on 01-28-25 1:00PM; Conference Room 225 & Videoconference.

upper

Jan 17, 2025

Committee

Referred to HOU, WAM.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 10, 2025

Introduced

Pending Introduction.

upper

3 primary · 0 co-sponsors