Bill > HB929

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 by the seller. The surcharge will apply to net capital gains from transferring agricultural land, which is defined as lands in an agricultural district as classified under Hawaii's existing land use regulations. The surcharge percentage increases for shorter holding periods, creating a financial disincentive for quick land sales and potentially encouraging longer-term agricultural land ownership. The specific surcharge percentages are not filled in within the bill text (indicated by blank spaces), but the framework proposes different rates for land held from less than four months up to just under six years. The new tax provision will take effect on July 1, 2025, and will be in addition to existing conveyance taxes. This approach appears designed to discourage speculative land trading in agricultural areas and potentially promote more stable agricultural land use and ownership.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=929&year=2026