Bill > HB1213

This bill modifies Hawaii's conveyance tax law by introducing a new, significantly higher tax rate of 300 dollars per $100 for residential real property sales to buyers who have not filed a Hawaii state income tax return within the preceding four years. The bill defines residential real property as properties with one to four dwelling units or residential condominiums/cooperative apartments primarily used for residential occupancy. The existing conveyance tax structure, which previously had rates ranging from 10 cents to 1 dollar per $100 based on property value, is retained for most transactions, with the new punitive rate added as a separate category. The bill aims to discourage non-resident or non-tax-filing individuals from purchasing residential properties in Hawaii, potentially as a means to address housing affordability or speculative real estate investment. The new tax rate will take effect on January 1, 2026, giving potential buyers and sellers advance notice of the change. The conveyance tax is a transaction tax applied when real property is sold or transferred, with rates varying based on property value and, now, the tax filing status of the purchaser.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1213&year=2026