Government Affairs Update
April 24, 2009
THIS WEEK AT THE LEGISLATURE...
ACT 137 – REALTOR® Exemption One Step Closer.
S.B. 34 passed Conference Committee and will be voted on the floor in the coming days. HAR will be urging the Governor’s signature on this important bill to rectify the unintended consequences placed on the real estate industry. Bill does not become law until then.
S.B. 34, Relating to the Mortgage Rescue Fraud Prevention Act, excludes licensed real estate brokers and salespersons from the definition of distressed property consultants in the Mortgage Foreclosure Rescue Fraud Prevention Act and prohibits certain conduct relating to the acquisition of an ownership interest in distressed property by licensed real estate brokers and salespersons for up to one year.
BUDGET AND FINANCE
HAR issued two surveys to the members seeking their opinion on several tax measures the Legislature are attempting to use to balance the budget. Thank you to those who took the time to fill out the survey as your opinions are valuable and do count. Our members have spoken and based on the results we will continue to oppose and take your message to the Legislature that we are against any taxes and any attempts to use the Hawai‘i Hurricane Relief Fund.
CALL-TO-ACTION
A Call-to-Action was sent to membership to write their legislators to vote no on the increases in the Conveyance Tax and Income Tax.
H.B. 1741, Relating to Conveyance Tax; conveyance tax rate – Increases Conveyance Tax on non-owner occupant condos and single-family residences to $1.25 per $100 (1.25%), an increase of 357%; and increases the maximum rate on other property to $1 per $100 (1%), an increase of 333% .
H.B. 1747, Relating to Taxation; Income Tax rate – Increases State income tax, until 2015, to a maximum tax rate of 11% on individuals who earn $200,000 or more a year; heads of households who make $300,000 or more a year; and couples filing jointly who earn $400,000 or more a year.
LETTERS TO LEGISLATORS
Letters were submitted to all Legislators urging them to vote no to any additional taxes and to the Conveyance Tax. Click the links below to read the letters:
SESSION MAY BE EXTENDED
According to an article by Derrick DePledge in the Honolulu Advertiser, click here for full article “Lawmakers missed the Tuesday deadline to have bills at the Governor's desk within 10 session days of adjournment, which would have required Governor Lingle to sign or veto the bills before the session closes May 7. House leaders are prepared to extend the session by a few days for potential veto overrides of the tax measures, but Senate leaders have not made a similar commitment.
If the session is not extended, Lingle would have 45 working days — or until July 14 — to sign, veto or allow the tax bills to become law without her signature. Lawmakers also have the option of returning in July for a veto override session.”