Changes the conveyance tax rate to an unspecified rate; establishes that projects undertaken in accordance with management of the natural area reserves system are included in the list of priorities for funds disbursed from the natural area reserve fund.

A BILL FOR AN ACT

SECTION 1. The legislature recognizes the value of Hawaii's natural resources to its economy, culture, and quality of life. However, an alarmingly small amount of money is invested each year to protect our natural assets. Currently, only one per cent of the state's budget is allocated to protect and manage Hawaii's precious natural and cultural resources-- the very foundation of our island community and economy. Especially critical are the department of land and natural resources' efforts to ensure that basic necessities, such as our water supply, are protected for future generations. Equally important is the protection of our native plants, animals, and ecosystems, which together comprise some of the basic elements of native Hawaiian culture.

The legislature has already determined that the conveyance tax is an appropriate means to fund the conservation of natural resources on private land by establishing that the natural area partnership program and forest stewardship program be awarded first priority in receiving the dedicated twenty-five per cent of conveyance tax collections that is deposited into the natural area reserve fund. However, such dedicated funding has not been provided for the natural area reserves system.

The purpose of this Act is to, among other things:

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, which shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the rate of [10]      cents per $100 of such actual and full consideration[;] paid for all transfers or conveyances of realty or any interest therein; 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, which shall include on-site as well as offsite 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 fiscal year, twenty-five per cent shall be paid into the rental housing trust fund established by section 201G-432 and twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources [after joint consultation with the forest stewardship committee and the natural area reserves system commission] in the following priority:

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on September 1, 2005.