Report Title:

Conveyance Tax; Tax Rate

Description:

Provides for a sliding scale to increase the rate of taxation on transfers or conveyances of realty or any interest by maintaining the 10 cents per $100 rate for property under $385,000; and adding the rates of 20 cents per $100 of consideration from $385,000 to $1,000,000; and 30 cents per $100 of consideration over $1,000,000.

THE SENATE

S.B. NO.

2125

TWENTY-SECOND LEGISLATURE, 2004

 

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, which shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the rate of 10 cents per $100 of such actual and full consideration[;] under $385,000; 20 cents per $100 of such actual and full consideration from $385,000 to $1,000,000; and 30 cents per $100 of such actual and full consideration over $1,000,000; 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, which shall include on-site as well as offsite improvements, applicable to the leased premises; and provided further that the tax imposed for each transaction shall be not less than $1."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

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