Hawaii 2024 Regular Session

Hawaii House Bill HB890 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. 890 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to taxation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	HOUSE OF REPRESENTATIVES H.B. NO. 890
4	4	THIRTY-SECOND LEGISLATURE, 2023
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7	7	HOUSE OF REPRESENTATIVES
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9	9	H.B. NO.
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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 taxation.
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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. Section 235-68, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows: "§235-68 Withholding of tax on the disposition of real property by nonresident persons. (a) As used in this section: "Nonresident person" means every person other than a resident person. "Property" or "real property" has the meaning as the same term is defined in section 231-1. "Resident person" means any: (1) Individual included in the definition of resident in section 235-1; (2) Corporation incorporated or granted a certificate of authority under chapter 414, 414D, or 415A; (3) Partnership formed or registered under chapter 425 or 425E; (4) Foreign partnership qualified to transact business pursuant to chapter 425 or 425E; (5) Limited liability company formed under chapter 428 or any foreign limited liability company registered under chapter 428; provided that if a single member limited liability company has not elected to be taxed as a corporation, the single member limited liability company shall be disregarded for purposes of this section and this section shall be applied as if the sole member is the transferor; (6) Limited liability partnership formed under chapter 425; (7) Foreign limited liability partnership qualified to transact business under chapter 425; (8) Trust included in the definition of resident trust in section 235-1; or (9) Estate included in the definition of resident estate in section 235-1. "Residential real property" means fee simple or leasehold real property upon which is situated: (1) From one to four dwelling units; or (2) A residential condominium or cooperative apartment, the primary use of which is occupancy as a resident by any natural person or persons, regardless of whether the property owner resides on the property. "Transferee" means any person, the State and the counties and their respective subdivisions, agencies, authorities, and boards, acquiring real property which is located in Hawaii. "Transferor" means any person disposing real property that is located in Hawaii. (b) Unless otherwise provided in this section, every transferee shall deduct and withhold a tax equal to 7.25 per cent of the amount realized on the disposition of Hawaii real property [.]; provided that, if the retail property being disposed of is residential real property, the transferee shall instead deduct and withhold a tax equal to seventy-five per cent of the amount realized on the disposition of the Hawaii real property. Every person required to withhold a tax under this section is made liable for the tax and is relieved of liability for or upon the claim or demand of any other person for the amount of any payments to the department made in accordance with this section." SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 3. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
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49	49	SECTION 1. Section 235-68, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
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51	51	"§235-68 Withholding of tax on the disposition of real property by nonresident persons. (a) As used in this section:
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53	53	"Nonresident person" means every person other than a resident person.
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55	55	"Property" or "real property" has the meaning as the same term is defined in section 231-1.
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57	57	"Resident person" means any:
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59	59	(1) Individual included in the definition of resident in section 235-1;
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61	61	(2) Corporation incorporated or granted a certificate of authority under chapter 414, 414D, or 415A;
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63	63	(3) Partnership formed or registered under chapter 425 or 425E;
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65	65	(4) Foreign partnership qualified to transact business pursuant to chapter 425 or 425E;
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67	67	(5) Limited liability company formed under chapter 428 or any foreign limited liability company registered under chapter 428; provided that if a single member limited liability company has not elected to be taxed as a corporation, the single member limited liability company shall be disregarded for purposes of this section and this section shall be applied as if the sole member is the transferor;
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69	69	(6) Limited liability partnership formed under chapter 425;
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71	71	(7) Foreign limited liability partnership qualified to transact business under chapter 425;
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73	73	(8) Trust included in the definition of resident trust in section 235-1; or
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75	75	(9) Estate included in the definition of resident estate in section 235-1.
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77	77	"Residential real property" means fee simple or leasehold real property upon which is situated:
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79	79	(1) From one to four dwelling units; or
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81	81	(2) A residential condominium or cooperative apartment, the primary use of which is occupancy as a resident by any natural person or persons, regardless of whether the property owner resides on the property.
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83	83	"Transferee" means any person, the State and the counties and their respective subdivisions, agencies, authorities, and boards, acquiring real property which is located in Hawaii.
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85	85	"Transferor" means any person disposing real property that is located in Hawaii.
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87	87	(b) Unless otherwise provided in this section, every transferee shall deduct and withhold a tax equal to 7.25 per cent of the amount realized on the disposition of Hawaii real property [.]; provided that, if the retail property being disposed of is residential real property, the transferee shall instead deduct and withhold a tax equal to seventy-five per cent of the amount realized on the disposition of the Hawaii real property.
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89	89	Every person required to withhold a tax under this section is made liable for the tax and is relieved of liability for or upon the claim or demand of any other person for the amount of any payments to the department made in accordance with this section."
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91	91	SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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93	93	SECTION 3. This Act shall take effect upon its approval.
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99	99	INTRODUCED BY: _____________________________
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101	101	INTRODUCED BY:
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103	103	_____________________________
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109	109	Report Title: Hawaii Real Property Tax Law; Income Taxation; Residential Real Property; Nonresidents Description: Amends the taxes withheld on the amount realized by nonresidents from the disposition of Hawaii residential real property from 7.25% to 75%. Applies to real estate dispositions that occur on or after 9/15/2023. 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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115	115	Report Title:
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117	117	Hawaii Real Property Tax Law; Income Taxation; Residential Real Property; Nonresidents
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121	121	Description:
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123	123	Amends the taxes withheld on the amount realized by nonresidents from the disposition of Hawaii residential real property from 7.25% to 75%. Applies to real estate dispositions that occur on or after 9/15/2023.
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131	131	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.