Bill Text: HI HB2441 | 2018 | Regular Session | Amended
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Engrossed - Dead) 2018-03-08 - Referred to HOU, WAM. [HB2441 Detail]
Download: Hawaii-2018-HB2441-Amended.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2441 |
TWENTY-NINTH LEGISLATURE, 2018 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that housing costs in Hawaii are among the highest in the nation. First-time home buyers find it especially difficult to afford even modest accommodations, while wealthy investors from around the world continue to purchase additional homes in the State. Homes have historically been used as investments. However, investment opportunity should not come at a significant loss to first-time home buyers or residents of Hawaii.
The legislature finds that the Hawaii housing finance and development corporation has financing programs to help residents with down payments, securing a mortgage, and rental assistance.
The purpose of this Act is to encourage
homeownership among Hawaii residents by:
(1) Increasing the conveyance tax rates for
investment properties;
(2) Lowering the conveyance tax rates for
properties with a value under two million dollars; and
(3) Requiring that a portion of conveyance tax
revenues be deposited into the housing finance revolving fund to assist Hawaii
housing finance and development corporation financing programs.
SECTION 2. Section 247-2, Hawaii Revised Statutes, is amended to read as follows:
"§247-2 Basis and rate of tax. The tax imposed by section 247-1 shall be based on the actual and full consideration (whether cash or otherwise, including any promise, act, forbearance, property interest, value, gain, advantage, benefit, or profit), paid or to be paid for all transfers or conveyance of realty or any interest therein, that shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the following rates:
(1) Except as provided in paragraph (2):
(A) [Ten] Five
cents per $100 for properties with a value of less than $600,000;
(B) [Twenty] Ten
cents per $100 for properties with a value of at least $600,000, but less than
$1,000,000;
(C) [Thirty]
Fifteen cents per $100 for properties with a value of at least
$1,000,000, but less than $2,000,000;
(D) Fifty
cents per $100 for properties with a value of at least $2,000,000, but less
than $4,000,000;
(E) Seventy
cents per $100 for properties with a value of at least $4,000,000, but less
than $6,000,000;
(F) Ninety
cents per $100 for properties with a value of at least $6,000,000, but less
than $10,000,000; and
(G) One
dollar per $100 for properties with a value of $10,000,000 or greater; and
(2) For the sale of a
condominium or single family residence for which the purchaser is ineligible
for a county homeowner's exemption on property tax[:
(A) Fifteen
cents per $100 for properties with a value of less than $600,000;
(B) Twenty-five
cents per $100 for properties with a value of at least $600,000, but less than
$1,000,000;
(C) Forty cents per $100 for properties with a value of at least
$1,000,000, but less than $2,000,000;
(D) Sixty cents per $100 for properties with a value of at least
$2,000,000, but less than $4,000,000;
(E) Eighty-five cents per $100 for properties with a value of at
least $4,000,000, but less than $6,000,000;
(F) One dollar and ten cents per $100 for properties with a value of
at least $6,000,000, but less than $10,000,000; and
(G) One dollar and twenty-five cents per $100 for properties with a
value of $10,000,000 or greater,], three per cent of the value,
of such actual and full consideration; provided that in the case of a lease or sublease, this chapter shall apply only to a lease or sublease whose full unexpired term is for a period of five years or more, and in those cases, including (where appropriate) those cases where the lease has been extended or amended, the tax in this chapter shall be based on the cash value of the lease rentals discounted to present day value and capitalized at the rate of six per cent, plus the actual and full consideration paid or to be paid for any and all improvements, if any, that shall include on-site as well as off-site improvements, applicable to the leased premises; and provided further that the tax imposed for each transaction shall be not less than $1."
SECTION 3. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:
"§247-7 Disposition of taxes.
All taxes collected under this chapter shall be paid into the state
treasury to the credit of the general fund of the State, to be used and
expended for the purposes for which the general fund was created and exists by
law; provided that of the taxes collected each year:
(1) Ten
per cent or $6,800,000, whichever is less, shall be paid into the land
conservation fund established pursuant to section 173A-5; [and]
(2) Fifty
per cent or $38,000,000, whichever is less, shall be paid into the rental
housing revolving fund established by section 201H-202[.]; and
(3)
per cent or $ , whichever is
less, shall be paid into the housing finance revolving fund established under
section 201H-80."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on January 1,
2050; provided that section 2 and section 3 of this Act shall apply to taxable
years beginning after December 31, 2018.
Report Title:
Conveyance Tax; Housing
Description:
Amends conveyance tax rates. Requires that a percentage of conveyance taxes collected be deposited into the Housing Finance Revolving Fund. (HB2441 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.