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On actual and full consideration paid for the transfer of realty, including leases and subleases, a tax is imposed.  The tax ranges from 10¢ per $100 for conveyances under $600,000 to $1.00 per $100 for conveyances in excess of $10 million.  For condominiums or single family residences that do not qualify for a county homeowner exemption, the tax ranges from 15¢ per $100 for properties valued up to $600,000 to $1.25 per $100 for properties valued at over $10 million.

As applied to leases and subleases, including extensions of existing leases, the new or increased rent is discounted to present value using a 6% discount rate and the tax rates above are applied to the result.  Conveyance tax is not imposed on a lease or sublease whose full unexpired term is for a period less than five years.

Minimum tax on each transaction is $1.00. Certain exemptions are allowed.

Distribution: 10% or $6.8 million, whichever is less, to the land conservation fund;

50% or $38 million, whichever is less, into the rental housing revolving fund; and

The balance to the general fund.

SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes, as amended through the 2016 legislative session, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances. Last Revised: August 19, 2016