This is a BAD IDEA that will increase the cost of living for everyone in Hawai‘i
This amendment will authorize the legislature to tax ALL investment properties in Hawaiʻi regardless of their value and regardless of whether the property owner lives in Hawai‘i or out of state.
Families and individuals who rent will pay more for housing. This proposal will create an additional tax on rental housing, including walk-up apartment buildings from Kalihi to Hilo, second homes in Kapa‘a and Makawao that have been passed down for generations, and family-owned townhomes and condos in Honolulu and Kona. The result will be higher rents, making housing costs even more expensive and unaffordable.
Businesses, including retailers, grocery stores, restaurants, farmers, care homes, medical clinics, dentists, veterinarians, accountants, hotels, movie theaters and more, will pay higher lease rents. The increased tax burden will lower profits, and the additional costs will be passed on to customers in the form of higher prices for essential goods and services, including more expensive groceries and clothing, higher rates for services, as well as increased costs to eat out or to go to a movie.