HOUSE OF REPRESENTATIVES	H.B. NO.	445
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to 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] Five cents per $100 for properties with a value of less than $600,000;

         (B)  [Twenty] Ten cents per $100 for properties with a value of at least $600,000, but less than $1,000,000;

         (C)  Thirty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000;

         (D)  [Fifty cents] One dollar per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;

         (E)  [Seventy] One dollar and forty cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;

         (F)  [Ninety] One dollar and eighty cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and

         (G)  [One dollar] Two dollars per $100 for properties with a value of $10,000,000 or greater; 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] Ten cents per $100 for properties with a value of less than $600,000;

         (B)  [Twenty-five] Twenty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000;

         (C)  Forty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000;

         (D)  [Sixty] One dollar and twenty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;

         (E)  [Eighty-five] One dollar and seventy cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;

         (F)  [One dollar and ten] Two dollars and twenty cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and

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

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 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.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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  Statutory material to be repealed is bracketed and stricken.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

     SECTION 4.  This Act shall take effect on July 1, 2017.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Conveyance Tax Rates

 

Description:

Reduces the conveyance tax rates for properties with a value of less than $1,000,000.  Increases the conveyance tax rates for properties with a value of $2,000,000 or greater.

 

 

 

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