Bills

SB 3333: Counties; Real Property Tax Relief; Affordable Housing; Transfer Date

Session Year: 2025-2026
House: Senate
Latest Version Date: 2026-02-18

Current Status:

Failed

(2026-03-25: The committee(s) on HSG recommend(s) that the measure be deferred.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Final Decking

Enacted

What does this bill do?

The bill requires counties to apply property tax exemptions, reduced assessments, or special tax classifications to affordable housing as of the date a qualifying owner takes title. It covers units with income, resale, or occupancy limits and tells counties to follow their procedures when updating taxes for the next tax period.

Version:

Requires each county to apply any applicable real property tax exemptions, reduced assessments, or tax classifications for any affordable housing subject to income, resale, or occupancy restrictions as of the date a qualifying owner takes title to the affordable housing for the upcoming tax period, consistent with county procedures. Effective 4/19/2042. (SD1)

Version:

SB3333 SD1

THE SENATE	S.B. NO.	3333
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION.

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

SECTION 1. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§46- Affordable housing; real property tax relief; date of transfer. Each county shall apply any applicable real property tax exemptions, reduced assessments, or tax classifications for any affordable housing subject to income, resale, or occupancy restrictions as of the date a qualifying owner takes title to the affordable housing for the upcoming tax period, consistent with county procedures."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on April 19, 2042.

Report Title:

Counties; Real Property Tax Relief; Affordable Housing; Transfer Date

Description:

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

Date	Status
Mar 25, 2026	The committee(s) on HSG recommend(s) that the measure be deferred.
Mar 20, 2026	Bill scheduled to be heard by HSG on Wednesday, 03-25-26 10:00AM in House conference room 430 VIA VIDEOCONFERENCE.
Mar 10, 2026	Referred to HSG, FIN, referral sheet 16
Mar 10, 2026	Pass First Reading
Mar 6, 2026	Received from Senate (Sen. Com. No. 136) in amended form (SD 1).
Mar 6, 2026	Report Adopted; Passed Third Reading. Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.
Mar 5, 2026	One Day Notice 03-06-26.
Mar 5, 2026	Reported from WAM (Stand. Com. Rep. No. 2834) with recommendation of passage on Third Reading.
Mar 3, 2026	The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.
Feb 25, 2026	The committee(s) on WAM deferred the measure until 03-03-26 10:15AM; Conference Room 211 & Videoconference.
Feb 23, 2026	The committee(s) on WAM will hold a public decision making on 02-25-26 10:57AM; Conference Room 211 & Videoconference.
Feb 19, 2026	Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
Feb 19, 2026	Reported from EIG/HOU (Stand. Com. Rep. No. 2456) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
Feb 17, 2026	The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EIG were as follows: 5 Aye(s): Senator(s) Wakai, Chang, DeCoite, Richards, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
Feb 17, 2026	The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Elefante, Rhoads, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
Feb 13, 2026	The committee(s) on EIG/HOU has scheduled a public hearing on 02-17-26 3:01PM; Conference Room 224 & Videoconference.
Feb 2, 2026	Referred to EIG/HOU, WAM.
Jan 30, 2026	Passed First Reading.
Jan 30, 2026	Introduced.

Date	Description	Location	Votes
Mar 6, 2026	Third Reading	Senate Floor	24 0 1 Passed
Mar 3, 2026	The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED	Senate Standing Committee on Ways and Means	12 0 1 Passed
Feb 17, 2026	The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS	Senate Standing Committee on Energy and Intergovernmental Affairs	5 0 0 Passed
Feb 17, 2026	The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS	Senate Standing Committee on Housing	5 0 0 Passed

Key

Pro

Against

Did Not Vote

This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.

Positions by individuals are not included.

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

Organization	Position	Date
County of Kaua‘i	*** Against	Feb 25, 2026
County of Maui	*** Against	Feb 25, 2026
Department of Budget and Fiscal Services, City and County of Honolulu	*** Against	Mar 24, 2026
Department of Finance	*** Against	Feb 25, 2026
Hawai‘i Association of REALTORS®	*** Support	Mar 24, 2026
Nā Hale O Maui	** Support
Na Hale O Maui	*** Support	Feb 17, 2026

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

SSCR2834 Lance Ching SSCR Ainoa Naniole 2 40 2026-03-03T18:25:00Z 2026-03-05T02:45:00Z 2026-03-05T02:45:00Z 2 340 1880 House of Representatives 22296 74 23 2215 16.00 Print 0 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman",serif;}

STAND. COM. REP. NO. 2834

Honolulu, Hawaii

RE: S.B. No. 3333

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3333, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to provide real property tax relief to buyers of affordable housing.

More specifically, this measure requires each county to apply any applicable real property tax exemptions, reduced assessments, or tax classifications for any affordable housing subject to income, resale, or occupancy restrictions as of the date a qualifying owner takes title to the affordable housing for the upcoming tax period, consistent with county procedures.

Your Committee received written comments in support of this measure from the Hawaii Association of REALTORS.

Your Committee received written comments in opposition to this measure from the County of Maui Department of Finance and County of Kauai Department of Finance.

Your Committee received written comments on this measure from the City and County of Honolulu Department of Budget and Fiscal Services and Tax Foundation of Hawaii.

Your Committee finds that purchasers of income‑, resale‑, or occupancy‑restricted affordable housing often face a delay between taking title and receiving appropriate real property tax relief, resulting in unnecessary tax burdens during that interim period. Your Committee believes that aligning real property tax exemptions, reduced assessments, or tax classifications with the date of transfer supports long‑term affordability, promotes homeownership opportunities for low‑ and moderate‑income households, and advances state and county housing policy goals.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3333, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair

SSCR2456 Margaret McGary SSCR Ainoa Naniole 2 5 2026-02-18T20:55:00Z 2026-02-19T03:29:00Z 2026-02-19T03:29:00Z 2 379 2159 House of Representatives 22144 80 24 2535 16.00 Print 110 0 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman",serif;}

STAND. COM. REP. NO. 2456

Honolulu, Hawaii

RE: S.B. No. 3333

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Energy and Intergovernmental Affairs and Housing, to which was referred S.B. No. 3333 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

beg leave to report as follows:

The purpose and intent of this measure is to require each county to apply any applicable real property tax exemptions, reduced assessments, or tax classifications for any affordable housing subject to income, resale, or occupancy restrictions as of the date a qualifying owner takes title to the affordable housing for the upcoming tax period, consistent with county procedures.

Your Committees received testimony in support of this measure from the Hawaii Association of REALTORS, Nā Hale O Maui, and four individuals.

Your Committees received comments on this measure from the Tax Foundation of Hawaii.

Your Committees find that housing classified as "affordable" is a tool to help stabilize local communities and support workforce housing. However, under certain county ordinances, certain affordable housing units face unnecessary administrative barriers that can dramatically increase a homeowner's tax burden. Your Committees further find that affordable housing units or deed-restricted properties can be assessed and taxed as if they were unrestricted market-rate properties. Your Committees believe that providing affordable housing, including equitable real property tax treatment for these units, is essential to supporting the State's housing goals. Therefore, this measure will assist homebuyers of affordable housing units and promote fairness and long-term housing security for the State.

Your Committees have amended this measure by inserting an effective date of April 19, 2042, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Energy and Intergovernmental Affairs and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3333, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3333, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy and Intergovernmental Affairs and Housing,

________________________________

STANLEY CHANG, Chair

________________________________

GLENN WAKAI, Chair

Date	Testimony PDF
Mar 24, 2026	SB3333_SD1_TESTIMONY_HSG_03-25-26_.PDF
Feb 25, 2026	SB3333_SD1_TESTIMONY_WAM_02-25-26_.PDF
Feb 17, 2026	SB3333_TESTIMONY_EIG-HOU_02-17-26_.PDF

Discussed in Hearing

55SEC

Authors shown for version:
SB3333_SD1 (2/18/2026)

INTRODUCED BY:	_____________________________

SB 3333: Counties; Real Property Tax Relief; Affordable Housing; Transfer Date

Current Status:

What does this bill do?

House Standing Committee on Housing

House Standing Committee on Housing

Senate Standing Committee on Agriculture and Environment

Senate Standing Committee on Housing

Senate Standing Committee on Energy and Intergovernmental Affairs

Senate Standing Committee on Public Safety and Military Affairs

Senate Standing Committee on Transportation

Senate Standing Committee on Water, Land, Culture and the Arts