HOUSE OF REPRESENTATIVES

H.B. NO.

1964

TWENTY-NINTH LEGISLATURE, 2018

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to public education.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1.  The legislature finds that the children of Hawaii are entitled to high quality public education and that there are areas of public education in Hawaii in need of improvement.  Some of these areas include:

     (1)  Performance of educators in relation to their pay;

     (2)  Continuity and experience of educators at Hawaii's public schools due to a lack of incentives to remain in the public educational system with many educators leaving the system within three years;

     (3)  Faculty to student ratio as a result of understaffing;

     (4)  Resources dedicated to special education programs; and

     (5)  Resources dedicated to education in the arts.

     The legislature finds that many of these issues stem from a lack of funding of the public education system in Hawaii and that providing a more dedicated source of funding for Hawaii's public education system will help to remedy some of these issues.

     The purpose of this Act is to increase the conveyance tax for certain properties valued at $4,000,000 or greater to provide additional funding for specified public education purposes.

     SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part V to be appropriately designated and to read as follows:

     "§302A-    Tianxin Zhang public education special fund.  There is established in the state treasury the Tianxin Zhang public education special fund, into which shall be deposited all revenue from the imposition of the conveyance tax as specified under section 247-7.  Moneys in the Tianxin Zhang public education special fund shall be used to support educational programs and activities to improve Hawaii's public schools including:

     (1)  The establishment of an exchange program between high school students from China and Hawaii;

     (2)  The hiring of additional teachers to improve educational continuity and experience and teacher to student ratios;

     (3)  The funding of special education programs;

     (4)  The funding of art programs; and

     (5)  The funding of any other educational programs or infrastructure improvements the department deems necessary to improve the public school system."

     SECTION 3.  Section 247-2, Hawaii Revised Statutes, is amended to read as follows:

     "§247-2  Basis and rate of tax.  The tax imposed by section 247-1 shall be based on the actual and full consideration (whether cash or otherwise, including any promise, act, forbearance, property interest, value, gain, advantage, benefit, or profit), paid or to be paid for all transfers or conveyance of realty or any interest therein, that shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the following rates:

     (1)  Except as provided in paragraph (2):

          (A)  Ten cents per $100 for properties with a value of less than $600,000;

          (B)  Twenty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000;

          (C)  Thirty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000;

          (D)  Fifty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;

          (E)  [Seventy] Eighty cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;

          (F)  [Ninety cents] One dollar per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and

          (G)  One dollar and twenty-five cents per $100 for properties with a value of $10,000,000 or greater; and

     (2)  For the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner's exemption on property tax:

          (A)  Fifteen cents per $100 for properties with a value of less than $600,000;

          (B)  Twenty-five cents per $100 for properties with a value of at least $600,000, but less than $1,000,000;

          (C)  Forty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000;

          (D)  Sixty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;

          (E)  [Eighty-five cents] One dollar per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;

          (F)  One dollar and [ten] twenty-five cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and

          (G)  One dollar and [twenty-five] fifty cents per $100 for properties with a value of $10,000,000 or greater,

of such actual and full consideration; provided that in the case of a lease or sublease, this chapter shall apply only to a lease or sublease whose full unexpired term is for a period of five years or more, and in those cases, including (where appropriate) those cases where the lease has been extended or amended, the tax in this chapter shall be based on the cash value of the lease rentals discounted to present day value and capitalized at the rate of six per cent, plus the actual and full consideration paid or to be paid for any and all improvements, if any, that shall include on-site as well as off-site improvements, applicable to the leased premises; and provided further that the tax imposed for each transaction shall be not less than $1."

     SECTION 4.  Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

     "§247-7  Disposition of taxes.  All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

     (1)  Ten per cent or $6,800,000, whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; [and]

     (2)  Fifty per cent or $38,000,000, whichever is less, shall be paid into the rental housing revolving fund established by section 201H-202[.]; and

     (3)        per cent or $        , whichever is less, shall be paid into the Tianxin Zhang public education special fund established pursuant to section 302A-  ."

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Conveyance Tax; Public Education; Special Fund

 

Description:

Increases the conveyance tax for certain properties valued at $4,000,000 or greater.  Establishes the Tianxin Zhang public education special fund and deposits a portion of conveyance tax moneys into the special fund.  Requires moneys in the special fund to be used for educational programs and activities.

 

 

 

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