# Hawaii SB 1131: RELATING TO TAXATION.

Hawaii SB 1131, RELATING TO TAXATION., is a 2025–2026 Regular Session (Year 2) Senate bill sponsored by Angus L.K. McKelvey (Democratic); status failed, last action 2025-12-08 (Carried over to 2026 Regular Session.) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/HI-SB1131-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Hawaii SB 1131
- State: Hawaii
- Session: 2025–2026 Regular Session (Year 2)
- Title: RELATING TO TAXATION.
- Status: failed
- Chamber: Senate
- Introduced: 2025-01-17
- Last action: 2025-12-08, Carried over to 2026 Regular Session.
- Sponsor: Angus L.K. McKelvey (Democratic)
- Cosponsors: 2
- Subjects: DOTAX, HHFDC, Taxation, Hedge Funds, End Hedge Fund Control of Hawaii Homes, Excise Tax on Excess Single-Family Residences, Housing Down Payment Trust Fund, Grant Programs, HOU, WAM/JDC
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Imposes an excise tax on certain hedge funds failing to dispose of excess single-family residences, escalating over a ten-year period. Imposes a tax on any newly acquired single-family residences by a hedge fund. Makes certain exemptions. Requires the Department of Taxation to establish a certification process to ensure buyers of homes sold by hedge funds are not major investors in residential real estate. Establishes the Housing Down Payment Trust Fund to be administered by the Hawaii Housing Finance and Development Corporation to provide grants to establish new or supplement existing programs that provide down payment assistance to families purchasing homes within the State. Allocates collected tax revenue and penalties paid by hedge funds to the Housing Down Payment Trust Fund. Applies to taxable years beginning after 12/31/2025.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Angus L.K. McKelvey (Democratic), Senate
- Cosponsor: Stanley Chang (Democratic), Senate
- Cosponsor: Joy A. San Buenaventura (Democratic), Senate

## Actions (6)

- 2025-12-08: Carried over to 2026 Regular Session.
- 2025-02-04: The committee on HOU deferred the measure. (Senate)
- 2025-01-31: The committee(s) on HOU has scheduled a public hearing on 02-04-25 1:00PM; Conference Room 225 & Videoconference. (Senate)
- 2025-01-23: Referred to HOU, WAM/JDC. (Senate)
- 2025-01-21: Passed First Reading. (Senate)
- 2025-01-17: Introduced. (Senate)

## Bill text

- Original: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB1131_.HTM), [PDF](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB1131_.pdf)

## Related bills

- SB 847: RELATING TO PSYCHOLOGISTS. (became law)
- HB 2344: RELATING TO SCHOOL FACILITIES. (signed)
- HB 2023: RELATING TO TRANSPORTATION. (signed)
- HB 2021: RELATING TO TRANSPORTATION. (signed)
- SB 2338: RELATING TO HOUSING. (signed)
- HB 1973: RELATING TO HEALTH. (signed)

## Sources
- [Original (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB1131_.HTM)
- [Original (PDF)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB1131_.pdf)

## Related
- [SB 847: RELATING TO PSYCHOLOGISTS.](https://policyrisk.com/state-bill/HI-SB847-2026)
- [HB 2344: RELATING TO SCHOOL FACILITIES.](https://policyrisk.com/state-bill/HI-HB2344-2026)
- [HB 2023: RELATING TO TRANSPORTATION.](https://policyrisk.com/state-bill/HI-HB2023-2026)
- [HB 2021: RELATING TO TRANSPORTATION.](https://policyrisk.com/state-bill/HI-HB2021-2026)
- [SB 2338: RELATING TO HOUSING.](https://policyrisk.com/state-bill/HI-SB2338-2026)
- [HB 1973: RELATING TO HEALTH.](https://policyrisk.com/state-bill/HI-HB1973-2026)
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- [Hawaii state hub](https://policyrisk.com/states/hawaii)
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Source: PRIA, https://policyrisk.com/state-bill/HI-SB1131-2026 (as of 2026-11-01).