THE SENATE	S.B. NO.	247
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to AGRICULTURAL LAND CONVEYANCE TAX.

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

SECTION 1. Chapter 247, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§247-    Conveyance tax surcharge. (a) In addition to any tax imposed under this chapter and section 235‑51(f), a surcharge shall be imposed on the net capital gain from the transfer or conveyance of realty or any interest in agricultural land that is subject to section 247-1.

(b) The rate of the surcharge shall be based on the years held at the following rates on the net capital gain:

(1)      per cent of net capital gain for agricultural land held less than four months;

(2)      per cent of net capital gain for agricultural land held for four months, but less than eight months;

(3)      per cent of net capital gain for agricultural land held for eight months, but less than one year;

(4)      per cent of net capital gain for agricultural land held for one year, but less than two years;

(5)      per cent of net capital gain for agricultural land held for two years, but less than three years;

(6)      per cent of net capital gain for agricultural land held for three years, but less than four years;

(7)      per cent of net capital gain for agricultural land held for four years, but less than five years; and

(8)      per cent of net capital gain for agricultural land held for five years, but less than six years.

(c) As used in this section, "agricultural land" means lands in an agricultural district classified pursuant to chapter 205."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2025.

INTRODUCED BY:

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Report Title:

Conveyance Tax Surcharge; Net Capital Gains; Agricultural Land

Description:

Establishes a surcharge on the conveyance tax upon the net capital gain from the transfer or conveyance of agricultural land.

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