Report Title:

Conveyance Tax; Homeless; Historic Preservation

Description:

Increases the conveyance tax and divides the increase in revenue between assisting the homeless, providing affordable housing, and assisting the State Historic Preservation Program.

THE SENATE

S.B. NO.

2702

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. Chapter 201G, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201G- Hale kokua program revolving fund. There is created a hale kokua program revolving fund. All appropriations made to, and all moneys received or collected by the corporation for the purpose of the revolving fund shall be deposited into the revolving fund. The proceeds in the revolving fund shall be used to administer the hale kokua program under part IV of chapter 201G."

SECTION 2. 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; or 20 cents per $100 of such actual and full consideration paid in the amount of $500,000 or greater but less than $1,000,000; or 30 cents per $100 of such actual and full consideration paid in the amount of $1,000,000 or greater; 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 3. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. (a) All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that, except for subsection (b), of the taxes collected each fiscal year, twenty-five per cent shall be paid into the rental housing trust fund established by section 201G-432 and twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources after joint consultation with the forest stewardship committee and the natural area reserves system commission in the following priority:

(1) To natural area partnership and forest stewardship programs;

(2) Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners; and

(3) The youth conservation corps established under chapter 193.

(b) All taxes collected for each individual property in excess of the 10 cents per $100 rate under section 247-2 shall be distributed as follows:

(1) Thirty per cent of the excess funds shall be paid into the Hawaii historic preservation special fund under section 6E-16, for the purchase, maintenance, and restoration of historic properties including cultural sites;

(2) Thirty-five per cent of the excess funds shall be paid into the dwelling unit revolving fund under section 201G-411 to provide affordable housing and related infrastructure; and

(3) Thirty-five per cent of the excess funds shall be paid into the hale kokua program revolving fund under section 201G- ."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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