REPORT TITLE:
Conveyance Tax Revenues


DESCRIPTION:
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.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1370        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
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:

 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
 

 
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                                     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
 

 
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                                     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.
 
 9 
 
10                           INTRODUCED BY:  _______________________