Hawaii 2023 Regular Session

Hawaii House Bill HB1351 Compare Versions

Only one version of the bill is available at this time.

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1	1	HOUSE OF REPRESENTATIVES H.B. NO. 1351 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to the conveyance tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	HOUSE OF REPRESENTATIVES H.B. NO. 1351
4	4	THIRTY-SECOND LEGISLATURE, 2023
5	5	STATE OF HAWAII
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7	7	HOUSE OF REPRESENTATIVES
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9	9	H.B. NO.
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11	11	1351
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13	13	THIRTY-SECOND LEGISLATURE, 2023
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to the conveyance tax.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. The legislature finds that homes are in short supply across Hawaii and the need for affordable housing on all islands is dire. The legislature further finds that when foreign buyers purchase homes in the State and simply leave them vacant, it exacerbates the dearth of housing available to residents. In addition, the legislature finds that by making it less attractive for foreign buyers to purchase and then re-sell homes as short-term investments, residents will have greater access to housing. Therefore, the purpose of this Act is to amend the conveyance tax by adding a fee schedule for properties that are sold by foreign entities or non-resident foreign nationals. 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 for all transfers or conveyance of realty or any interest therein, that shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the following rates: (1) Except as provided in paragraph (2)[:] or (3): (A) Ten cents per $100 for properties with a value of less than $600,000; (B) Twenty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000; (C) Thirty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000; (D) Fifty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000; (E) Seventy cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000; (F) Ninety cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and (G) One dollar per $100 for properties with a value of $10,000,000 or greater; [and] (2) For the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner's exemption on property tax: (A) Fifteen cents per $100 for properties with a value of less than $600,000; (B) Twenty-five cents per $100 for properties with a value of at least $600,000, but less than $1,000,000; (C) Forty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000; (D) Sixty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000; (E) Eighty-five cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000; (F) One dollar and ten cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and (G) One dollar and twenty-five cents per $100 for properties with a value of $10,000,000 or greater[,]; and (3) For the sale of a condominium or single family residence for which the seller is: (A) A foreign entity; or (B) A foreign national who has not claimed a county homeowner's exemption on property tax for each of the five years immediately preceding the sale: (i) Thirty cents per $100 for properties with a value of less than $600,000; (ii) Fifty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000; (iii) Eighty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000; (iv) One dollar and twenty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000; (v) One dollar and seventy cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000; (vi) Two dollars and twenty cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and (vii) Two and fifty cents per $100 for properties with a value of $10,000,000 or greater, of such actual and full consideration; 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, that shall include on-site as well as off-site improvements, applicable to the leased premises; and provided further that the tax imposed for each transaction shall be not less than $1." SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 4. This Act shall take effect on July 1, 2023. INTRODUCED BY: _____________________________
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49	49	SECTION 1. The legislature finds that homes are in short supply across Hawaii and the need for affordable housing on all islands is dire. The legislature further finds that when foreign buyers purchase homes in the State and simply leave them vacant, it exacerbates the dearth of housing available to residents. In addition, the legislature finds that by making it less attractive for foreign buyers to purchase and then re-sell homes as short-term investments, residents will have greater access to housing.
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51	51	Therefore, the purpose of this Act is to amend the conveyance tax by adding a fee schedule for properties that are sold by foreign entities or non-resident foreign nationals.
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53	53	SECTION 2. Section 247-2, Hawaii Revised Statutes, is amended to read as follows:
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55	55	"§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 for all transfers or conveyance of realty or any interest therein, that shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the following rates:
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57	57	(1) Except as provided in paragraph (2)[:] or (3):
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59	59	(A) Ten cents per $100 for properties with a value of less than $600,000;
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61	61	(B) Twenty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000;
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63	63	(C) Thirty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000;
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65	65	(D) Fifty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;
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67	67	(E) Seventy cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;
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69	69	(F) Ninety cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and
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71	71	(G) One dollar per $100 for properties with a value of $10,000,000 or greater; [and]
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73	73	(2) For the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner's exemption on property tax:
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75	75	(A) Fifteen cents per $100 for properties with a value of less than $600,000;
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77	77	(B) Twenty-five cents per $100 for properties with a value of at least $600,000, but less than $1,000,000;
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79	79	(C) Forty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000;
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81	81	(D) Sixty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;
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83	83	(E) Eighty-five cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;
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85	85	(F) One dollar and ten cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and
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87	87	(G) One dollar and twenty-five cents per $100 for properties with a value of $10,000,000 or greater[,]; and
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89	89	(3) For the sale of a condominium or single family residence for which the seller is:
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91	91	(A) A foreign entity; or
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93	93	(B) A foreign national who has not claimed a county homeowner's exemption on property tax for each of the five years immediately preceding the sale:
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95	95	(i) Thirty cents per $100 for properties with a value of less than $600,000;
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97	97	(ii) Fifty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000;
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99	99	(iii) Eighty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000;
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101	101	(iv) One dollar and twenty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;
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103	103	(v) One dollar and seventy cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;
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105	105	(vi) Two dollars and twenty cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and
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107	107	(vii) Two and fifty cents per $100 for properties with a value of $10,000,000 or greater,
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109	109	of such actual and full consideration; 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, that shall include on-site as well as off-site improvements, applicable to the leased premises; and provided further that the tax imposed for each transaction shall be not less than $1."
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111	111	SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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113	113	SECTION 4. This Act shall take effect on July 1, 2023.
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117	117	INTRODUCED BY: _____________________________
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119	119	INTRODUCED BY:
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127	127	Report Title: Conveyance Tax; Fee Schedule; Properties Sold by Foreign Entities or Non-resident Foreign Nationals Description: Amends the conveyance tax by adding a fee schedule for properties that are sold by foreign entities or non-resident foreign nationals. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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131	131	Report Title:
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133	133	Conveyance Tax; Fee Schedule; Properties Sold by Foreign Entities or Non-resident Foreign Nationals
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137	137	Description:
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139	139	Amends the conveyance tax by adding a fee schedule for properties that are sold by foreign entities or non-resident foreign nationals.
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147	147	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.