Bill Text: HI SB1145 | 2018 | Regular Session | Amended
Bill Title: Relating To The Conveyance Tax.
Spectrum: Partisan Bill (Democrat 15-0)
Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [SB1145 Detail]
Download: Hawaii-2018-SB1145-Amended.html
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THE SENATE |
S.B. NO. |
1145 |
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TWENTY-NINTH LEGISLATURE, 2017 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE CONVEYANCE TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State desperately needs to increase the development and construction of affordable housing units. The legislature passed Act 127, Session Laws of Hawaii 2016, which established a rental housing goal of developing at least 22,500 rental housing units, ready for occupancy between 2017 and 2026. The rental housing revolving fund, which provides low-interest loans or grants to qualified owners and developers constructing affordable housing units, can help to fulfill the housing need.
The legislature further finds that under the current statute, fifty per cent or $38,000,000, whichever is less, is paid into the rental housing revolving fund annually from the state conveyance tax. The department of taxation projects that the conveyance tax revenues will increase over the next five years. The removal of the $38,000,000 statutory cap and an increase in rates for certain conveyance tax categories has the potential to increase the amount available in the rental housing revolving fund to be used for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units.
The purpose of this Act is to further advance development and construction of rental housing by:
(1) Removing the $38,000,000 statutory cap and increasing the portion of conveyance tax collections to be paid into the rental housing revolving fund; and
(2) Increasing the rates for certain conveyance tax categories.
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):
(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] Fifty cents per $100
for properties with a value of at least $1,000,000, but less than $2,000,000;
(D) [Sixty] Seventy cents per
$100 for properties with a value of at least $2,000,000, but less than
$4,000,000;
(E) [Eighty-five] Ninety-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] twenty-five
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] 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. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:
"§247-7 Disposition of taxes. 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 of the taxes collected each fiscal year:
(1) Ten per cent or $6,800,000, whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; and
(2) [Fifty] Sixty per cent [or
$38,000,000, whichever is less,] shall be paid into the rental housing revolving
fund established by section 201H-202."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2017.
Report Title:
Conveyance Tax; Allocation of Taxes; Rental Housing Revolving Fund
Description:
Increases the rates for certain conveyance tax categories. Increases the percentage of conveyance tax to be paid into the rental housing revolving fund for the financing of affordable rental housing development. Repeals the statutory cap on the disposition of conveyance taxes dedicated for deposit into the rental housing revolving fund. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
