Bill > SB247

This bill establishes a new surcharge on the conveyance tax specifically for agricultural land transfers, with the surcharge rate varying based on how long the land has been held. The surcharge will apply to net capital gains from transferring agricultural land (defined as lands in an agricultural district according to existing state classification) and will impose different percentage rates depending on the length of land ownership, ranging from a higher rate for land held less than four months to a lower rate for land held between five and six years. The bill introduces these new provisions to Chapter 247 of Hawaii Revised Statutes, adding a graduated tax structure that appears designed to discourage short-term speculation in agricultural land while potentially providing a more favorable tax treatment for longer-term agricultural land ownership. The new surcharge will be in addition to existing conveyance taxes and is scheduled to take effect on July 1, 2025. Although the specific percentage rates are not filled in the provided bill text (they are marked with blank spaces), the structure suggests a sliding scale that increases the tax burden for shorter-term land holdings.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=247&year=2026