HB 979: RELATED TO SUMMARY POSSESSION.

A BILL FOR AN ACT

RELATED TO SUMMARY POSSESSION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 666, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§666-     Summary possession proceedings; tax clearance.  (a)  The person or entity seeking possession of the premises for failure to pay rent shall include in the complaint filed with the court the current general excise tax license number used for rental income earned from the premises; provided that if the complaint does not include the information required by this subsection, then the complaint shall be dismissed.

     (b)  The judiciary shall submit an annual list of all summary possession cases filed with the courts to the department of taxation.  The list shall include the following information:

     (1)  The case number;

     (2)  The name of the person or entity seeking possession of the property;

     (3)  The general excise tax license number provided, if any; and

     (4)  The date the complaint was filed."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Summary Possession; GET license; Judiciary

Description:

Requires that a current general excise tax license number for any rental income be filed with the complaint to the court for summary possession proceedings.  Requires the Judiciary to submit an annual list of certain information regarding summary possession cases to the Department of Taxation.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATED TO SUMMARY POSSESSION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 666, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§666-     Summary possession proceedings; tax clearance.  (a)  The person or entity seeking possession of the premises for failure to pay rent shall include in the complaint filed with the court the current general excise tax license number used for rental income earned from the premises; provided that if the complaint does not include the information required by this subsection, then the complaint shall be dismissed.

     (b)  The judiciary shall submit an annual list of all summary possession cases filed with the courts to the department of taxation.  The list shall include the following information:

     (1)  The case number;

     (2)  The name of the person or entity seeking possession of the property;

     (3)  The general excise tax license number provided, if any; and

     (4)  The date the complaint was filed."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2025.

Report Title:

Summary Possession; GET license; Judiciary

Description:

Requires that a current GET license number for any rental income be filed with the complaint to the court for summary possession proceedings.  Requires the judiciary to submit an annual list of certain information regarding summary possession cases to the department of taxation.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  893

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 979

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 979, H.D. 1, entitled:

"A BILL FOR AN ACT RELATED TO SUMMARY POSSESSION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Require that a current general excise tax license number for any rental income be filed with the complaint to the court for summary possession proceedings; and

     (2)  Require the Judiciary to submit an annual list of certain information regarding summary possession cases to the Department of Taxation.

     Your Committee received testimony in support of this measure from the Hawaiʻi Appleseed Center for Law & Economic Justice.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Judiciary; Department of Taxation; and Tax Foundation of Hawaii.

     Your Committee finds that some landlords currently rent properties without proper registration, avoiding tax obligations while still utilizing the legal system to evict tenants.  This measure seeks to close that loophole by requiring landlords to present a valid general excise tax license before initiating summary possession proceedings for unpaid rent, preventing landlords from taking advantage of state resources while failing to meet their own financial responsibilities.

     Your Committee recommends this measure be effective on July 1, 2026, to provide time for the Department of Taxation to implement the requirements of this measure.

     As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 979, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

STAND. COM. REP. NO.  418

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 979

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 979 entitled:

"A BILL FOR AN ACT RELATED TO SUMMARY POSSESSION,"

begs leave to report as follows:

     The purpose of this measure is to require landlords, lessors, or plaintiffs in a summary possession action to submit a general excise tax license in good standing as a condition to the issuance of a writ of possession.

     Your Committee received testimony in support of this measure from the Hawaii Appleseed Center for Law & Economic Justice.  Your Committee received comments on this measure from the Judiciary; Department of Taxation; and Tax Foundation of Hawaii.

     Your Committee finds that the revenue generated from the leasing of real property is subject to the general excise tax.  Your Committee further finds that, while residential rental properties serve a valuable role of providing housing, landlords should also fulfill their tax obligations.  This measure imposes a requirement for the landlord to provide proof of compliance with the landlord's general tax obligations to prior to availing the landlord with the remedy of summary possession.

     Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

     Your Committee notes that the Judiciary, in its written testimony to your Committee, raised concerns that the measure would require the Judiciary to develop system modifications to its existing case management system to account for the general excise tax license information.  As such, the Judiciary requested that the measure be effective no sooner than July 1, 2026, to allow for these necessary systems modifications.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 979, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 979, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,