What You Need to Know About Bill 46 - Empty Homes Tax
- Details
- Category: City Affairs Blog
- Published: October 23, 2024
The City Affairs Committee recognizes that many of you have questions and concerns regarding Bill 46 - aka “Empty Homes Tax”. We are diligently working to educate the City Council, but WE NEED YOUR HELP! Below is an explanation of Bill 46, its impact, and how members can assist with our next steps!
Summary of Bill 46 (2024)
The Honolulu City Council introduced Bill 46 (2024), which proposes an "Empty Homes Tax" targeting vacant residential properties in the City and County of Honolulu. This supplemental real property tax aims to help alleviate Honolulu's housing affordability crisis and homelessness by encouraging property owners to either rent or sell homes that are sitting vacant.
The bill would impose a substantial additional tax (on top of Res A) on homes deemed “empty” for more than 6 months of the year. The tax would be phased in over three years: 1% of the assessed property value in the first year, rising to 3% by the third year. An indicator of how challenging this bill will be to administer are the 15 qualifying exemptions, including homes undergoing construction, probate cases, medical absences, and military deployments.
