Bill Text: HI HB286 | 2024 | Regular Session | Introduced
Bill Title: Relating To The Conveyance Tax.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [HB286 Detail]
Download: Hawaii-2024-HB286-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
286 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the conveyance tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. 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 cents per $100 for] For
properties with a value of less than $600,000[;]: 10 cents per $100;
(B) [Twenty cents per $100 for] For
properties with a value of at least $600,000, but less than $1,000,000[;]: 20 cents per $100;
(C) [Thirty
cents per $100 for] For properties with a value of at least
$1,000,000, but less than $2,000,000[;]: 30 cents per $100;
(D) [Fifty
cents per $100 for] For properties with a value of at least
$2,000,000, but less than $4,000,000[;]: 50 cents per $100;
(E) [Seventy
cents per $100 for] For properties with a value of at least
$4,000,000, but less than $6,000,000[;]: 70 cents per $100;
(F) [Ninety
cents per $100 for] For properties with a value of at least
$6,000,000, but less than $10,000,000[;]: 90 cents per $100; and
(G) [One
dollar per $100 for] For properties with a value of $10,000,000 or
greater[;]: $1 per $100;
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] For
properties with a value of less than $600,000[;]: 15 cents per $100;
(B) [Twenty-five cents per $100 for] For
properties with a value of at least $600,000, but less than $1,000,000[;]: 25 cents per $100;
(C) [Forty
cents per $100 for] For properties with a value of at least
$1,000,000, but less than $2,000,000[;]: 40 cents per $100;
(D) [Sixty
cents per $100 for] For properties with a value of at least
$2,000,000, but less than $4,000,000[;]: $1.20 per $100;
(E) [Eighty-five
cents per $100 for] For properties with a value of at least
$4,000,000, but less than $6,000,000[;]: $1.70 per $100;
(F) [One
dollar and ten cents per $100 for] For properties with a value of at
least $6,000,000, but less than $10,000,000[;]: $2.20 per $100; and
(G) [One
dollar and twenty-five cents per $100 for] For properties with a
value of $10,000,000 or greater[,]:
$2.50 per $100,
of [such] the 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]; provided further that if a 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 2. 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] the
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 for the development or acquisition of affordable housing for qualified
persons and subject to a government assistance program approved and certified
by the Hawaii housing finance and development corporation and administered or
operated by the corporation, or any of its instrumentalities, corporate or
otherwise. For purposes of this
paragraph:
"Affordable
housing" has the same meaning as in section 201H-57.
"Qualified
person" means an individual who has no ownership interest in any real
property."
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 fiscal year:
(1) Ten
per cent or $5,100,000, 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."
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, 2024.
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INTRODUCED BY: |
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Report Title:
Conveyance Tax; Rate; Disposition; Affordable Housing Exemption; Rental Housing Revolving Fund
Description:
Increases the rate of conveyance tax for condominiums and single family residences ineligible for a county homeowner's exemption with a value of at least $2,000,000. Exempts from the conveyance tax documents and instruments conveying real property subject to a government assistance program approved and certified by the Hawaii housing finance and development corporation and used for the provision of affordable housing for qualified persons in the State. Removes maximum dollar amount of conveyance tax revenues that are to be paid into the rental housing revolving fund each fiscal year. Effective 1/1/2024.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
