Bill Text: HI HB2364 | 2024 | Regular Session | Amended
Bill Title: Relating To The Conveyance Tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2024-03-18 - The committee(s) on HOU/WTL deleted the measure from the public hearing scheduled on 03-19-24 1:00PM; CR 225 & Videoconference. [HB2364 Detail]
Download: Hawaii-2024-HB2364-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2364 |
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THIRTY-SECOND LEGISLATURE, 2024 |
H.D. 2 |
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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):] paragraphs (2) and (3):
(A) [Ten cents per $100 for] For
properties with a value of less than $600,000[;]: 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[;]: 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[;]: 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[;]: 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[;]: 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[; and]: $
per $100;
(G) [One dollar per $100 for] For
properties with a value of at least $10,000,000 [or greater; and],
but less than $14,000,000: $
per $100;
(H) For properties with a value of at least
$14,000,000, but less than $18,000,000: $
per $100;
(I) For properties with a value of at least
$18,000,000, but less than $22,000,000:
$
per $100;
(J) For properties with a value of at least
$22,000,000, but less than $26,000,000:
$
per $100; and
(K) For properties with a value of $26,000,000
or greater: $
per $100;
(2) For the sale of a multifamily
residential property:
(A) For properties with a value of less
than $600,000:
cents per $100;
(B) For properties with a value of at
least $600,000, but less than $1,000,000:
cents per $100;
(C) For properties with a value of at least
$1,000,000, but less than $2,000,000:
cents per $100;
(D) For properties with a value of at least
$2,000,000, but less than $4,000,000:
cents per $100;
(E) For properties with a value of at least
$4,000,000, but less than $6,000,000:
cents per $100;
(F) For properties with a value of at least
$6,000,000, but less than $10,000,000:
cents per $100;
(G) For properties with a value of at least
$10,000,000, but less than $20,000,000: $
per $100;
(H) For properties with a value of at least $20,000,000,
but less than $50,000,000: $
per $100;
(I) For properties with a value of at least $50,000,000,
but less than $100,000,000: $
per $100; and
(J) For properties with a value of $100,000,000
or greater: $
per $100; and
[(2)] (3)
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[;]: 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[;]:
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[;]:
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[;]: $
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[;]: $
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[;
and]: $
per $100;
(G) [One dollar and twenty-five cents per $100
for] For properties with a value of at least $10,000,000 [or
greater,], but less than $14,000,000:
$
per $100;
(H) For properties with a value of at least
$14,000,000, but less than $18,000,000:
$
per $100;
(I) For properties with a value of at least
$18,000,000, but less than $22,000,000:
$
per $100;
(J) For properties with a value of at least
$22,000,000, but less than $26,000,000:
$
per $100; and
(K) For properties with a value of $26,000,000
or greater: $
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] no less than $1.
For purposes of this subsection, "multifamily residential property" means a structure that is located within the state urban land use district and divided into five or more dwelling units."
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 to an individual who is an owner-occupant or renter-occupant of the property; provided the individual does not have a direct or indirect ownership interest in any other real property, including through ownership interest in a trust, partnership, corporation, limited liability company, or other entity."
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[.]; and
(3) Ten per cent shall be paid into the dwelling unit revolving fund established pursuant to section 201H-191 for the purposes of funding infrastructure programs in transit-oriented development areas."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were began before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 3000.
Report Title:
Conveyance Tax Rates and Exemptions; Multifamily Residential Properties; Land Conservation Fund; Rental Housing Revolving Fund; Dwelling Unit Revolving Fund; Allocations
Description:
Amends the conveyance tax rate for certain properties. Exempts conveyances of certain real property from the conveyance tax. Establishes a new conveyance tax rate for multifamily residential properties. Eliminates the cap on the amount of conveyance tax collections allocated to the Land Conservation Fund and Rental Housing Revolving Fund. Allocates ten percent of conveyance tax collections to the Dwelling Unit Revolving Fund for the purpose of funding infrastructure programs in transit-oriented development areas. Effective 7/1/3000. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
