Conveyance Tax Revenues

Increases conveyance tax from $.10 to $.20 per 100 and
redistributes revenues to include 10% to homeless shelters, and
20% to bureau of conveyance for two years.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 247-2, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "247-2 Basis and rate of tax.  The tax imposed by section
 4 247-1 shall be based on the actual and full consideration
 5 (whether cash or otherwise, including any promise, act,
 6 forbearance, property interest, value, gain, advantage, benefit,
 7 or profit) paid or to be paid, which shall include any liens or
 8 encumbrances thereon at the time of sale, lease, sublease,
 9 assignment, transfer, or conveyance, and shall be at the rate of
10 [10] 20 cents per $100 of such actual and full consideration;
11 provided that in the case of a lease or sublease, this chapter
12 shall apply only to a lease or sublease whose full unexpired term
13 is for a period of five years or more, and in those cases,
14 including (where appropriate) those cases where the lease has
15 been extended or amended, the tax in this chapter shall be based
16 on the cash value of the lease rentals discounted to present day
17 value and capitalized at the rate of six per cent, plus the
18 actual and full consideration paid or to be paid for any and all
19 improvements, if any, which shall include on-site as well as

Page 2                                         1370        
                                     H.B. NO.           

 1 offsite improvements, applicable to the leased premises; and
 2 provided further that the tax imposed for each transaction shall 
 3 be not less than $1."
 4      SECTION 2.  Section 247-1, Hawaii Revised Statutes, is
 5 amended to read as follows:
 6      "247-7 Disposition of taxes. All taxes collected under
 7 this chapter shall be paid into the state treasury to the credit
 8 of the general fund of the State, to be used and expended for the
 9 purposes for which the general fund was created and exists by
10 law; provided that of the taxes collected each fiscal year[,
11 twenty-five]:
12      (1)  Twenty-five per cent shall be paid into the rental
13           housing trust fund established by section 201G-432 [and
14           twenty-five];
15      (2)  Twelve and one-half per cent shall be paid into the
16           natural area reserve fund established by section 195-9;
17           provided that the funds paid into the natural area
18           reserve fund shall be annually disbursed to the natural
19           area partnership and forest stewardship programs by the
20           department of land and natural resources after joint
21           consultation with the forest stewardship committee and
22           the natural area reserves system commission[.]; and
23      (3)  Twenty per cent shall be paid to the bureau of

Page 3                                         1370        
                                     H.B. NO.           

 1           conveyances; and
 2      (4)  Ten per cent shall be paid to the housing and community
 3           development corporation for homeless shelter programs
 4           under part IV of chapter 201G."
 5      SECTION 3.  Statutory material to be repealed is bracketed.
 6 New statutory material is underscored.
 7      SECTION 4.  This Act shall take effect on July 1, 1999, and
 8 shall be repealed on June 30, 2001.
10                           INTRODUCED BY:  _______________________