Bill > HB2049

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 only apply to portions of the property's value above certain thresholds, 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, which are buildings with five or more dwelling units, by basing it on a per-unit value rather than the total property value to prevent disproportionately high taxes that could be passed on to renters. Furthermore, the bill allocates a portion of the collected conveyance tax revenues to the Dwelling Unit Revolving Fund, which will be used to finance infrastructure projects in areas that meet specific transit-supportive density requirements, meaning areas designed to encourage development near public transportation. Another portion of the revenue is dedicated to the Hawaiian Home Lands Trust Fund, providing predictable funding for the Department of Hawaiian Home Lands to support housing and infrastructure for beneficiaries. This Act is set to take effect on July 1, 3000.

Budget and Finance, Housing and Urban Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2049&year=2026