Get Hawaii Conveyance Manual

Under this bill, properties with a value of less than $2 million dollars would be subject to a conveyance tax of 55 cents per $100, up from a range of 15 to 40 cents under current law. The conveyance tax on properties valued at $2 to $4 million would go from 60 cents to $2 per $100.

How Is the Conveyance Tax Determined? One dollar and twenty-five cents ($1.25) per $100 of the actual and full consideration for properties with a value of $10,000,000 or greater . The conveyance tax imposed for each transaction shall be not less than one dollar ($1.00).

A transfer from a grantor to a grantor's own revocable living trust, or from a grantor's revocable living trust to the grantor who is the primary beneficiary of the trust, is exempt from conveyance taxes.

On actual and full consideration paid for the transfer of realty, including leases and subleases, a tax is imposed. The tax ranges from 10¢ per $100 for conveyances under $600,000 to $1.00 per $100 for conveyances in excess of $10 million.

The person responsible for the tax is generally the transferor, grantor, lessor, sublessor, conveyor, or other person conveying the real property interest (HRS §247-3). The ® standard purchase contract directs escrow to charge the conveyance tax to the seller.

The basis for the conveyance tax for these leases and subleases is the annual rent to be paid over the life of the lease or sublease discounted to present value and capitalized at the rate of 6% plus any other actual and full consideration paid for the lease or sublease, including improvements.