The Hawaii Legislature is considering a bill that would allow a company to pay $5,000 per acre for land that has been declared unclaimed, which would mean that it would be taxed twice as much.
The proposal comes after a similar proposal by the Honolulu Property Tax Authority in 2016.
The measure, SB 1221, has been referred to the House Committee on Revenue.
The bill was introduced by State Representative Jason Tarrant.
“This is an example of a property that is not currently considered a commercial asset,” Tarrants said.
“It’s really a property owned by a private entity that could potentially pay this amount.”
Tarrantes said that if the measure passed, Hawaii could be one of a handful of states that allows such a tax.
Tarrings proposed the bill to help businesses that sell commercial property.
“I don’t think there’s a better way to help the state than by allowing a small business to pay the same amount of property tax on the same parcel of land,” he said.
Hawaii has a property tax rate of about 11 percent, and is one of the lowest in the nation.
The tax is one reason why some Hawaii residents, especially those in the rural and small-town areas, have been hesitant to sell their homes or move.
However, the Hawaii Legislature could still act to change the tax system.
It is currently set to take effect next year.