Bill Text: HI HB2391 | 2012 | Regular Session | Introduced
Bill Title: Leased Fee Interest Sale; Capital Gains; Exempt from Taxation
Spectrum: Partisan Bill (Democrat 18-0)
Status: (Introduced - Dead) 2012-01-25 - (H) Referred to HSG, FIN, referral sheet 7 [HB2391 Detail]
Download: Hawaii-2012-HB2391-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2391 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to leasehold conversion.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. In 2007, the legislature enacted Act 166, which provides an income tax exemption of one hundred per cent of capital gains realized during taxable years 2008-2012 from sales of leased fee interest in condominium units to association of apartment owners or residential cooperative corporations. The purpose of the law is to encourage landowners to sell condominium lessees the fee interest in their units, and thereby promote the long-term stability in Hawaii's condominium housing market. Act 166, Session Laws of Hawaii 2007, sunsets on December 31, 2012.
Between the years 2012-2015, the lease terms of more than one thousand two hundred fifty condominium units in the urban district of Honolulu will expire, with lease terms of over one hundred units on the island of Hawaii expiring in 2015. Extending Act 166, Session Laws of Hawaii 2007, for an additional five years through 2017 will provide landowners and condominium lessees with a tool that encourages long-term home ownership.
SECTION 2. Act 166, Session Laws of Hawaii 2007, is amended by amending section 3 to read as follows:
"SECTION 3. This Act shall take effect
upon approval, and shall apply to taxable years beginning after December 31,
2007, and ending prior to January 1, [2013;] 2018; provided that
on January 1, [2013,] 2018, this Act shall be repealed and
section 235-7(a), Hawaii Revised Statutes, shall be reenacted in the form in
which it read on the day prior to the effective date of this Act."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Leased Fee Interest Sale; Capital Gains; Exempt from Taxation
Description:
Extends the sunset provision of Act 166, SLH 2007, to extend the exemption from taxation of capital gains realized from the sale of leased fee interest in condominium units to association of apartment owners or residential cooperative corporations until 1/1/18.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
