RELATING TO TAXATION.

HB1213

HOUSE OF REPRESENTATIVES

H.B. NO.

1213

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation
.

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:

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"
�247-2
�

Basis and rate of tax.
�
(a)
�
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):
]
paragraphs
(2) and (3):

���������
(A)
�
Ten cents per $100 for properties with a value
of less than $600,000;

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(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
]

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(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;

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(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

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(3)
�
For the sale of residential real property
in which the purchaser is a person who has not filed an income tax return in
this State, pursuant to chapter 235, within the preceding four years: three
hundred dollars per $100,

of [
such
]
the
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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(b)
�
As used in this section, "residential
real property" means fee simple or leasehold real property upon which is
situated:

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(1)
�
From one to four dwelling units; or

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(2)
�
A residential condominium or cooperative
apartment,

the primary use of which is occupancy as a
residence by any natural person or persons, regardless of whether the property
owner resides on the property.
"

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Statutory material to be repealed is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

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SECTION 3.
�
This Act shall
take effect on January 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Conveyance
Tax; Residential Real Property; Rates

Description:

Imposes a
conveyance tax rate of 300% on sales of residential real property to persons
who have not filed a Hawaii state income tax return within the preceding 4-year
period.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.