Bill Text: HI HB2416 | 2024 | Regular Session | Amended

---

Bill Title: Relating To Taxation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2024-03-07 - Referred to EET/WTL, WAM. [HB2416 Detail]

Download: Hawaii-2024-HB2416-Amended.html

---

HOUSE OF REPRESENTATIVES	H.B. NO.	2416
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 247-3, Hawaii Revised Statutes, is amended to read as follows:

     "§247-3  Exemptions.  The tax imposed by section 247-1 shall not apply to:

     (1)  Any document or instrument that is executed prior to January 1, 1967;

     (2)  Any document or instrument that is given to secure a debt or obligation;

     (3)  Any document or instrument that only confirms or corrects a deed, lease, sublease, assignment, transfer, or conveyance previously recorded or filed;

     (4)  Any document or instrument between husband and wife, reciprocal beneficiaries, or parent and child, in which only a nominal consideration is paid;

     (5)  Any document or instrument in which there is a consideration of $100 or less paid or to be paid;

     (6)  Any document or instrument conveying real property that is executed pursuant to an agreement of sale, and where applicable, any assignment of the agreement of sale, or assignments thereof; provided that the taxes under this chapter have been fully paid upon the agreement of sale, and where applicable, upon such assignment or assignments of agreements of sale;

     (7)  Any deed, lease, sublease, assignment of lease, agreement of sale, assignment of agreement of sale, instrument or writing in which the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof are the only parties thereto;

     (8)  Any document or instrument executed pursuant to a tax sale conducted by the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof for delinquent taxes or assessments;

     (9)  Any document or instrument conveying real property to the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof pursuant to the threat of the exercise or the exercise of the power of eminent domain;

    (10)  Any document or instrument that solely conveys or grants an easement or easements;

    (11)  Any document or instrument whereby owners partition their property, whether by mutual agreement or judicial action; provided that the value of each owner's interest in the property after partition is equal in value to that owner's interest before partition;

    (12)  Any document or instrument between marital partners or reciprocal beneficiaries who are parties to a divorce action or termination of reciprocal beneficiary relationship that is executed pursuant to an order of the court in the divorce action or termination of reciprocal beneficiary relationship;

    (13)  Any document or instrument conveying real property from a testamentary trust to a beneficiary under the trust;

    (14)  Any document or instrument conveying real property from a grantor to the grantor's revocable living trust, or from a grantor's revocable living trust to the grantor as beneficiary of the trust;

    (15)  Any document or instrument conveying real property, or any interest therein, from an entity that is a party to a merger or consolidation under chapter 414, 414D, 415A, 421, 421C, 425, 425E, or 428 to the surviving or new entity;

    (16)  Any document or instrument conveying real property, or any interest therein, from a dissolving limited partnership to its corporate general partner that owns, directly or indirectly, at least a ninety per cent interest in the partnership, determined by applying section 318 (with respect to constructive ownership of stock) of the federal Internal Revenue Code of 1986, as amended, to the constructive ownership of interests in the partnership; [and]

    [[](17)[]]  Any document or instrument that conforms to the transfer on death deed as authorized under chapter 527[.]; and

    (18)  Any document or instrument conveying real property during the period from June 30, 2024, to December 31, 2025, with a value of no more than $2,000,000 to an individual who:

          (A)  Is not an immediate family member of any owner of the property;

          (B)  Does not have a direct or indirect ownership interest in the property;

          (C)  Does not have a direct or indirect ownership interest in any other real property; and

          (D)  Intends to immediately occupy the property as the individual's primary residence for a period of not less than two years;

          provided that the property was furnished as a transient accommodation, as defined in section 237D-1, during the period from January 1, 2023, to June 30, 2024; and provided further that all outstanding taxes imposed under chapters 235, 237, and 237D for gross income, gross rental, or gross rental proceeds received for the furnishing of the property as a transient accommodation has been paid."

     SECTION 2.  Section 247-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  No certificate is required to be filed for any document or instrument made exempt by section 247-3, except that in the following situations, a certificate shall be filed in the manner and place that the director shall prescribe, within ninety days after the transaction or prior to the recordation or filing of the document or instrument with the registrar of conveyances or the assistant registrar of the land court or after the ninety-day period, recordation, or filing as the director shall prescribe:

     (1)  For any document or instrument described under section 247-3(3), any party to the document or instrument shall file a certificate declaring that the document or instrument merely confirms or corrects a deed, lease, sublease, assignment, transfer, or conveyance previously recorded or filed.

     (2)  For any document or instrument described under section 247-3(4), any party to the document or instrument shall file a certificate declaring the amount of the nominal consideration paid and marital or parental relationship of the parties.

     (3)  For any document or instrument described under section 247-3(5), any party to the document or instrument shall file a certificate declaring the reasons why the consideration is $100 or less.

     (4)  For any document or instrument described in section 247-3(6), any party to the document or instrument shall file a certificate declaring that the document or instrument is made pursuant to an agreement of sale, and where applicable, an assignment or assignments of agreements of sale.

     (5)  For any document or instrument described under section 247-3(8), any person made a party to the document or instrument as grantee, assignee, or transferee shall file a certificate declaring the full and actual consideration of the property transferred.

     (6)  For any document or instrument described under section 247-3(11), any party to the document or instrument shall file a certificate declaring each owner's:

          (A)  Undivided interest in the real property and the value of that interest before partition; and

          (B)  Proportionate interest and the value of that interest after partition.

     (7)  For any document or instrument described under section 247-3(12), any party to the document or instrument shall file a certificate declaring that the document or instrument is made pursuant to an order of the court and containing the court case number.

     (8)  For any document or instrument described under section 247-3(13), any party to the document or instrument shall file a certificate declaring that the document or instrument conveys real property from a testamentary trust to a trust beneficiary.

     (9)  For any document or instrument described under section 247-3(14), any party to the document or instrument shall file a certificate declaring that the document or instrument conveys real property from the grantor to a grantor's revocable living trust or from a grantor's revocable living trust to the grantor.

    (10)  For any document or instrument described under section 247-3(18), any party to the document or instrument shall file:

          (A)  A declaration signed under penalty of perjury by the transferee, declaring their intent to immediately occupy the property as their primary residence for a period of no less than two years; and

          (B)  Certificates from the appropriate parties declaring that all requirements in section 247-3(18) have been met."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall be repealed on January 1, 2026; provided that sections 247-3 and 247-6, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act.

 

Report Title:

Conveyance Tax; Transient Accommodation; Exemption

 

Description:

Provides a conveyance tax exemption for certain real property furnished as a transient accommodation.  Repeals 1/1/2026.  Effective 7/1/3000.  (HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.