by Krista A. Cohane, Esq.
The Hawaii Department of Taxation has issued a tax information release regarding the governor’s proclamations related to homelessness, which suspended the general excise tax for the planning, design, financing, construction, sale or lease in Hawaii of a certified housing project for housing homeless persons. (Hawaii Tax Information Release No. 2023-06, 10/27/2023.)
Applicability. The general excise tax is suspended only for qualified persons or firms involved with newly constructed, or moderately or substantially rehabilitated projects, that are developed under the proclamations for housing homeless persons.
Certification process. After a project is certified by the governor’s coordinator on homelessness, the taxpayer must complete Form G-37 (General Excise/Use Tax Exemption for Certified or Approved Housing Projects), which will be amended by the Department at a later date to allow taxpayers to indicate that a project is being developed. Until the form is amended, taxpayers should clearly write “Emergency Proclamation” at the top of Form G-37 and leave the three boxes under the “pursuant to (check one)” section of the form unchecked.
Form G-37 must be filed with the Hawaii Housing Finance and Development Corporation (HHFDC). Upon certification by HHFDC, they will provide a copy of the Form G-37 to the taxpayer and transmit the original directly to the Department of Taxation.
Filing requirements. Taxpayers must report all gross income received from the planning, design, financing, construction, sale, or lease in Hawaii of a certified project on Form G-45 (Periodic General Excise/Use Tax Return) and Form G-49 (Annual Return and Reconciliation of General Excise/Use Tax Return). Taxpayers must also file a Schedule GE (General Excise/Use Tax Schedule of Exemptions and Deductions), and use the exemption/deduction code “100.”
Income prior to announcement. Income received prior to this tax announcement should seek HHFDC certification for that income and amend any previously-filed tax returns.
