JOSH GREEN, M.D.

GARY S. SUGANUMAGOVERNORDIRECTOR OF TAXATIONSYLVIA LUKEKRISTEN M.R. SAKAMOTO

LT. GOVERNOR

DEPUTY DIRECTOR

STATE OF HAWAI’IDEPARTMENT OF TAXATION
Ka 'Oihana 'Auhau
P.O. BOX 259
HONOLULU, HAWAI’I 96809

PHONE NO: (808) 587-1530
FAX NO: (808) 587-1584

October 27, 2023

DEPARTMENT OF TAXATION ANNOUNCEMENT NO. 2023-06
RE:Suspension of General Excise Tax for Housing Projects Certified Under the Governor'sEmergency Rules

On May 19, 2023, Governor Josh Green, M.D. signed the Fourth Proclamation Relating
to Homelessness ("Fourth Proclamation"), which suspended general excise tax (GET) for theplanning, design, financing, construction, sale, or lease in the State of a project certified under
the Governor's emergency rules. Governor Green subsequently issued the Fifth Proclamation
Relating to Homelessness ("Fifth Proclamation") on July 18, 2023 and the Sixth Proclamation
Relating to Homelessness ("Sixth Proclamation") on September 15, 2023.
This Tax Announcement details the suspension of GET for housing projects for homelesspersons afforded under the Fourth Proclamation, Fifth Proclamation, and Sixth Proclamation(hereinafter collectively referred to as the "Proclamations").
Suspension of GET for Housing Projects
Certified by the Governor's Coordinator on Homelessness
Pursuant to the Proclamations, chapter 237, Hawaii Revised Statutes (HRS), issuspended:[T]o the extent that the suspension shall only apply to qualified persons or firms
involved with a newly constructed, or a moderately or substantially rehabilitated,project that is developed under this Proclamation for the provision of housing forhomeless persons, subject to the attached Governor’s emergency rules. Thesuspension shall apply to the planning, design, financing, construction, sale, orlease in the State of a project that has been certified under the attached Governor’semergency rules. “Moderate rehabilitation” and “substantial rehabilitation” shallhave the same meaning as set forth in section 201H-36(d), HRS.
In accordance with the foregoing, GET will be suspended for gross income received by aqualified person or firm for the planning, design, financing, construction, sale, or lease in theState for a newly constructed, or a moderately or substantially rehabilitated, project certified by
the Governor's Coordinator on Homelessness under the Governor's emergency rules.

Department of Taxation Announcement No. 2023-06
October 27, 2023
Page 2 of 3

The term "moderate rehabilitation" means "rehabilitation to upgrade a dwelling unit to adecent, safe, and sanitary condition, or to repair or replace major building systems orcomponents in danger of failure."
The term "substantial rehabilitation":(1)
Means the improvement of a property to a decent, safe, and sanitarycondition that requires more than routine or minor repairs orimprovements. It may include but is not limited to the gutting andextensive reconstruction of a dwelling unit, or cosmetic improvements
coupled with the curing of a substantial accumulation of deferred
maintenance; and(2)Includes renovation, alteration, or remodeling to convert or adapt
structurally sound property to the design and condition required for aspecific use, such as conversion of a hotel to housing for elders.
Certification Process for GET Suspension
Once 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. Form G-37 will be amended at a later date to allow taxpayers to indicate that aproject is being developed pursuant to an emergency proclamation. Until Form G-37 is amended,
please clearly write "Emergency Proclamation" at the top of Form G-37 and leave the threeboxes under the "pursuant to (check one)" section of the form unchecked.
Form G-37 must be filed with the Hawai'i Housing Finance and Development
Corporation (HHFDC). Upon certification by HHFDC, HHFDC will provide a copy of Form G37 to the taxpayer and transmit the original directly to the Department of Taxation.
GET Filing Requirements
Taxpayers must report all gross income received from the planning, design, financing,
construction, sale, or lease in the State of a project certified by the Governor's Coordinator onHomelessness 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 Schedule
GE, General Excise/Use Tax Schedule of Exemptions and Deductions, and use theExemption/Deduction (ED) Code "100."
If any income was received prior to the issuance of this Tax Announcement for which
GET would be suspended under the Proclamations, taxpayers should seek HHFDC certification
for that income and amend any previously-filed tax returns accordingly.

Department of Taxation Announcement No. 2023-06
October 27, 2023
Page 3 of 3

If you have questions about the certification process for the suspension of GET under theProclamations, please contact HHFDC at 808-587-0620. If you have any questions about thisTax Announcement or the Department of Taxation's implementation of the GET suspensionunder the Proclamations, please contact the Rules Office at 808-587-1530 or by emailing
Tax.Rules.Office@hawaii.gov.

GARY S. SUGANUMA
Director of Taxation