REPORT TITLE:
Conveyance Tax Exemptions


DESCRIPTION:
Exempts from the conveyance tax, transfers of real property or
any interest therein, in connection with the conversion of a
general or limited partnership to a limited liability company or
corporation, or vice versa.  (HB1649 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1649
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
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 247-3, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "247-3 Exemptions.  The tax imposed by section 247-1 shall
 
 4 not apply to:
 
 5      (1)  Any document or instrument [which] that is executed
 
 6           prior to January 1, 1967[.];
 
 7      (2)  Any document or instrument [which] that is given to
 
 8           secure a debt or obligation[.];
 
 9      (3)  Any document or instrument [which] that only confirms
 
10           or corrects a deed, lease, sublease, assignment,
 
11           transfer, or conveyance previously recorded or
 
12           filed[.];
 
13      (4)  Any document or instrument between husband and wife,
 
14           reciprocal beneficiaries, or parent and child, in which
 
15           only a nominal consideration is paid[.];
 
16      (5)  Any document or instrument in which there is a
 
17           consideration of $100 or less paid or to be paid[.];
 
18      (6)  Any document or instrument conveying real property
 
19           [which] that is executed pursuant to an agreement of
 

 
Page 2                                                     1649
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           sale, and where applicable, any assignment of the
 
 2           agreement of sale, or assignments thereof; provided
 
 3           that the taxes under this chapter have been fully paid
 
 4           upon the agreement of sale, and where applicable, upon
 
 5           such assignment or assignments of agreements of
 
 6           sale[.];
 
 7      (7)  Any deed, lease, sublease, assignment of lease,
 
 8           agreement of sale, assignment of agreement of sale,
 
 9           instrument or writing in which the United States or any
 
10           agency or instrumentality thereof or the State or any
 
11           agency, instrumentality, or governmental or political
 
12           subdivision thereof are the only parties thereto[.];
 
13      (8)  Any document or instrument executed pursuant to a tax
 
14           sale conducted by the United States or any agency or
 
15           instrumentality thereof or the State or any agency,
 
16           instrumentality, or governmental or political
 
17           subdivision thereof for delinquent taxes or
 
18           assessments[.];
 
19      (9)  Any document or instrument conveying real property to
 
20           the United States or any agency or instrumentality
 
21           thereof or the State or any agency, instrumentality, or
 
22           governmental or political subdivision thereof pursuant
 
23           to the threat of the exercise or the exercise of the
 
24           power of eminent domain[.];
 

 
Page 3                                                     1649
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1     (10)  Any document or instrument [which] that solely conveys
 
 2           or grants an easement or easements[.];
 
 3     (11)  Any document or instrument whereby owners partition
 
 4           their property, whether by mutual agreement or judicial
 
 5           action; provided that the value of each owner's
 
 6           interest in the property after partition is equal in
 
 7           value to that owner's interest before partition[.];
 
 8     (12)  Any document or instrument between marital partners or
 
 9           reciprocal beneficiaries who are parties to a divorce
 
10           action or termination of reciprocal beneficiary
 
11           relationship [which] that is executed pursuant to an
 
12           order of the court in the divorce action or termination
 
13           of reciprocal beneficiary relationship[.];
 
14     (13)  Any document or instrument conveying real property from
 
15           a testamentary trust to a beneficiary under the
 
16           trust[.];
 
17     (14)  Any document or instrument conveying real property from
 
18           a grantor to the grantor's revocable living trust, or
 
19           from a grantor's revocable living trust to the grantor
 
20           as beneficiary of the trust[.]; and
 
21     (15)  Any document or instrument conveying real property, or
 
22           any interest therein, executed in connection with the
 
23           conversion of:
 

 
Page 4                                                     1649
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           (A)  A general partnership or limited partnership to a
 
 2                limited liability company or corporation; or
 
 3           (B)  A limited liability company or corporation to a
 
 4                general partnership or limited partnership."
 
 5     SECTION 2.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7     SECTION 3.  This Act shall take effect upon its approval.