Under HB 58, the seller’s conveyance fee would increase based on a percentage of the sale price as follows:
- Tax rate for properties valued from $4 million to $6 million will double.
- Tax rate for properties valued between $6 million and $10 million will triple.
- Tax rate for properties valued over $10 million will quadruple.
To view HB 58 and Section 11, click here.
The state of Hawaii already has one of the highest conveyance fees in the country. The drastic rate increase in HB 58 will not only discourage real estate investment, but also increase the cost of living and doing business in a state that desperately needs economic growth and job creation, not another tax increase. The increased cost will inevitably be passed on through higher commercial and residential rents.
Simply put, this bill will have a crippling impact on large real estate acquisitions and development projects which are major drivers of economic activity and job creation in our island economy. The negative consequences will be felt by all and far outweigh the one-time tax revenue benefits. Be a voice of reason and request the Governor VETO this bill today – we promise it will only take 2 minutes!