honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Thursday, June 9, 2005

COMMENTARY
Legacy Lands: preserving Islands' beauty

By Rep. Brian Schatz

Although we live in a beautiful state, Hawai'i has rapidly and radically changed its landscape to accommodate growth in a relatively short period of time.

Looking forward, we must find ways to sensibly manage this development. We have to strike a balance between growth that is good for our economy and the preservation of Hawai'i lands that make these Islands so special.

One of the most important and extraordinary bills to come out of the 2005 legislative session is House Bill 1308, known as the Legacy Lands Act. Here the state's needs are addressed by good policy, funded by an appropriate source and supported by a wide range of dedicated communities. It is awaiting the governor's signature.

The bill would establish permanent and adequate funding for land conservation and the preservation of open spaces and scenic resources. This includes watershed protection, coastal preservation, flood prevention, parks, habitat protection, cultural preservation and agricultural production.

The eventual development, sale and improvement of real estate in Hawai'i add pressure to nature areas, coastal access, watershed areas and water resources. We determined that the conveyance tax, used appropriately for all land sales, should be used as a means to protect some of these vital areas and provide funding for land conservation. Here's how the law would work:

First, there would be an increase of the conveyance tax, which is assessed on the seller of any property, based on the purchase price. Currently, the tax is 0.1 percent on all land transactions.

For properties sold under $600,000, there would be no tax increase, except for second-home buyers. For properties sold for $600,000 to $1 million, the new rate would be 0.2 percent. For properties over $1 million, the tax would be increased to 0.3 percent. To put this in perspective, for a $900,000 home sold in 2004, the conveyance tax would be $900. Under this new law, the conveyance tax would be $1,800.

The conveyance tax revenues are expected to generate $36 million per year. Ten percent, or approximately $3.6 million per year, would go into a Legacy Lands Fund for the purchase of land deemed to have value as a resource to the state. The fund would be administered by the Department of Land and Natural Resources, whose board would determine which parcels of land to acquire based on recommendations from the state, the counties, and nonprofit land conservation organizations.

The remainder of the funds would be allocated for other important needs of the state. Thirty-five percent, or $12.6 million per year, would be deposited into the General Fund to help pay for a wide range of programs and initiatives.

Twenty-five percent, or $9 million per year, would go into the Natural Area Reserve Fund to assist the Natural Area Reserve System (NARS), one of the most critically important conservation programs in the state. NARS protects endangered species and valuable cultural and natural resources, mostly on publicly owned and ceded lands. Until now, the program has struggled to find resources to maintain the integrity of its work. Passing the Legacy Lands Act and finding increased funding for NARS were considered the top two legislative priorities for environmental groups this year.

Thirty percent, or about $10.8 million a year, would be placed in the Rental Housing Trust Fund to help develop affordable housing. As real estate prices escalate, more and more Hawai'i residents are priced out of the market, adding to the scarcity of affordable homes to purchase or rent. The use of the conveyance tax to address this crisis is urgently needed. That is why often disparate groups, the environmentalists and the housing advocates, came together to throw their considerable expertise and support behind this measure.

Rep. Brian Schatz, D-25th (Makiki, Tantalus), is vice chairman of the House Committee on Water, Land and Ocean Resources. He wrote this commentary for The Advertiser.