Bill > SB721

This bill modifies Hawaii's estate tax laws to remove exemptions for nonresidents and non-citizen nonresidents, ensuring that certain types of property located in Hawaii will be subject to estate tax regardless of the deceased person's state of domicile. Specifically, the bill eliminates existing provisions that previously exempted nonresidents from estate taxes if their home state did not tax similar property, and instead mandates that real property, land trust interests, and tangible personal property in Hawaii will be taxed. The legislation also amends the estate tax exclusion amount, though the exact new amount is left blank in the bill text (marked with a "$" placeholder). The bill's legislative findings emphasize that the estate tax is a mechanism to reduce income inequality, prevent the formation of an aristocratic class through inherited wealth, and ensure that wealthy individuals pay their "fair share" of taxes. The law is set to take effect on July 1, 2050, but will apply to decedents dying or taxable transfers occurring after December 31, 2024, which allows for a significant lead time for implementation and preparation by taxpayers.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=721&year=2026