Bill > HB2148

This bill establishes a new "unrealized gains surcharge" of three percent on property transfers subject to estate and generation-skipping transfer taxes where the assessed fair market value of the transferred property exceeds the transferee's basis (the original cost of the property for tax purposes) by $2,000,000 or more, requiring estates to report the fair market value of transferred property within thirty days of the transfer date, though this surcharge does not apply to bona fide farms and small businesses that remain in operation with a relative of the transferor, unless the transferee sells the property within two years, and also lowers the "applicable exclusion amount," which is the value of an estate that can be transferred without incurring estate tax, to $3,000,000, adjusted annually for inflation, for estates that do not include an owner-occupied residence or a bona fide farm, while retaining the federal applicable exclusion amount for estates that do include such properties, with these changes taking effect for decedents dying or taxable transfers occurring after December 31, 2025.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2148&year=2026