THE SENATE

S.B. NO.

2416

TWENTY-NINTH LEGISLATURE, 2018

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

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[;]:  $1.50 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[;]:  $2.50 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[;]:  $3.50 per $100; and

          (G)  [One dollar per $100 for] For properties with a value of $10,000,000 or greater[;]:  $4.50 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[;]:  $2 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[;]:  $3 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[;]:  $4 per $100; and

          (G)  [One dollar and twenty-five cents per $100 for] For properties with a value of $10,000,000 or greater[,]:  $5 per $100,

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] no less than $1."

     SECTION 2.  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 $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."

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  Statutory material to be repealed is bracketed and stricken.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

     SECTION 4.  This Act shall take effect on January 1, 2019.

 

 

Report Title:

Real Estate Conveyance Tax; Rate; Disposition

 

Description:

Increases the rate of real estate conveyance tax for properties with a value of at least $2,000,000.  Amends the calculation for the amount of conveyance taxes to be deposited into the rental housing revolving fund.  Takes effect on 01/01/2019.  (SD1)

 

 

 

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