RELATING TO AGRICULTURAL LAND CONVEYANCE TAX.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: PERRUSO, BELATTI, IWAMOTO
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The exact percentages for each holding period are not specified in the official bill text and remain unknown.

Agricultural Land Conveyance Tax Surcharge

This bill establishes a surcharge on the conveyance tax based on net capital gains from the transfer or conveyance of agricultural land.

What This Bill Does

Adds a new section to Hawaii Revised Statutes that imposes a surcharge on the conveyance tax for transfers or conveyances of agricultural land.
The rate of the surcharge is determined by the length of time the seller has held the agricultural land before selling it, based on net capital gains.
Defines 'agricultural land' as lands in an agricultural district classified under chapter 205 of Hawaii Revised Statutes.

Who It Names or Affects

People who sell or transfer agricultural land in Hawaii will be affected by this tax surcharge.
The state government, specifically the Department of Taxation, will collect and manage these new taxes.

Terms To Know

Conveyance: A legal term for transferring ownership or rights to property from one person to another.
Net Capital Gain: The profit made from selling an asset, after subtracting the cost of buying it and any other expenses related to the sale.

Limits and Unknowns

The exact percentages for each holding period are not specified in the provided text.
It is unclear how this surcharge will be enforced or what penalties might apply if someone does not pay it.
This bill has been carried over to the next legislative session and its final status is still pending.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-01-30 H
The committee(s) on WAL recommend(s) that the measure be deferred.
2025-01-27 H
Bill scheduled to be heard by WAL on Thursday, 01-30-25 9:00AM in House conference room 411 VIA VIDEOCONFERENCE.
2025-01-23 H
Referred to WAL, AGR, FIN, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO AGRICULTURAL LAND CONVEYANCE TAX.
Conveyance Tax Surcharge; Net Capital Gains; Agricultural Land
Establishes a surcharge on the conveyance tax upon the net capital gain from the transfer or conveyance of agricultural land.

Current Bill Text

Read the full stored bill text

HB929

HOUSE OF REPRESENTATIVES

H.B. NO.

929

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to AGRICULTURAL LAND CONVEYANCE TAX
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
Chapter 247, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

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"
�247-
�
Conveyance
tax surcharge.
�
(a)
�
In addition to any tax imposed under this
chapter and section 235‑51(f),
a surcharge shall
be imposed on the net capital gain from the transfer or conveyance of realty or
any interest in agricultural land
that is subject to section 247-1.

����
(b)
�
The rate of the surcharge shall be based on
the years held at the following rates on the net capital gain:

����
(1)
�

per cent of
net
capital
gain for agricultural land held less than four months;

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(2)
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per cent of
net
capital
gain for agricultural land held for four months, but less than eight
months;

����
(3)
�

per cent of
net
capital
gain for agricultural land held for eight months, but less than
one year;

����
(4)
�

per cent of
net
capital
gain for agricultural land held for one year, but less than two
years;

����
(5)
�

per cent of
net
capital
gain for agricultural land held for two years, but less than
three years;

����
(6)
�

per cent of
net
capital
gain for agricultural land held for three years, but less than
four years;

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(7)
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per cent of
net
capital
gain for agricultural land held for four years, but less than
five years; and

����
(8)
�

per cent of
net
capital
gain for agricultural land held for five years, but less than
six years.

����
(c)
�
As used in this section, "agricultural
land" means lands in an agricultural district classified pursuant to
chapter 205.
"

����
SECTION 2.
�
New statutory material is underscored.

����
SECTION 3.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Conveyance
Tax Surcharge; Net Capital Gains; Agricultural Land

Description:

Establishes a surcharge on the conveyance tax upon the net
capital gain from the transfer or conveyance of agricultural land.

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