Bill > SB2700

This bill restructures the conveyance tax, which is a tax on property sales, by implementing a marginal rate system for residential properties, meaning higher tax rates will apply only to higher portions of a property's value, and adjusts these rates to account for inflation through a cost-of-living adjustment to maintain their value over time. It also modifies how the tax is calculated for multifamily properties, basing it on a per-unit value rather than the total property value, which aims to prevent disproportionately high taxes on these types of buildings that could be passed on to renters. Additionally, the bill allocates portions of the collected conveyance tax revenue to specific funds: some will go to the Dwelling Unit Revolving Fund to support infrastructure projects in transit-oriented development areas, which are designated zones designed to encourage development near public transportation and meet certain density standards, and a significant portion, up to $60 million annually, will be dedicated to the Hawaiian Home Lands Trust Fund to provide consistent funding for housing and infrastructure for Native Hawaiian beneficiaries.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2700&year=2026