REPORT TITLE:
Conveyance tax exemption

DESCRIPTION:
Exempts certain transfers from the application of the conveyance
tax.  (HB2252 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2252
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE CONVEYANCE TAX.



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

 1      SECTION 1.  Section 247-3, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "247-3 Exemptions.  The tax imposed by section 247-1 shall
 
 4 not apply to:
 
 5      (1)  Any document or instrument that is executed prior to
 
 6           January 1, 1967;
 
 7      (2)  Any document or instrument that is given to secure a
 
 8           debt or obligation;
 
 9      (3)  Any document or instrument that only confirms or
 
10           corrects a deed, lease, sublease, assignment, transfer,
 
11           or conveyance previously recorded or filed;
 
12      (4)  Any document or instrument between husband and wife,
 
13           reciprocal beneficiaries, or parent and child, in which
 
14           only a nominal consideration is paid;
 
15      (5)  Any document or instrument in which there is a
 
16           consideration of $100 or less paid or to be paid;
 
17      (6)  Any document or instrument conveying real property that
 
18           is executed pursuant to an agreement of sale, and where
 

 
Page 2                                                     2252
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           applicable, any assignment of the agreement of sale, or
 
 2           assignments thereof; provided that the taxes under this
 
 3           chapter have been fully paid upon the agreement of
 
 4           sale, and where applicable, upon such assignment or
 
 5           assignments of agreements of sale;
 
 6      (7)  Any deed, lease, sublease, assignment of lease,
 
 7           agreement of sale, assignment of agreement of sale,
 
 8           instrument or writing in which the United States or any
 
 9           agency or instrumentality thereof or the State or any
 
10           agency, instrumentality, or governmental or political
 
11           subdivision thereof are the only parties thereto;
 
12      (8)  Any document or instrument executed pursuant to a tax
 
13           sale conducted by the United States or any agency or 
 
14           instrumentality thereof or the State or any agency,
 
15           instrumentality, or governmental or political
 
16           subdivision thereof for delinquent taxes or
 
17           assessments;
 
18      (9)  Any document or instrument conveying real property to
 
19           the United States or any agency or instrumentality
 
20           thereof or the State or any agency, instrumentality, or
 
21           governmental or political subdivision thereof pursuant
 
22           to the threat of the exercise or the exercise of the
 
23           power of eminent domain;
 

 
Page 3                                                     2252
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1     (10)  Any document or instrument that solely conveys or
 
 2           grants an easement or easements;
 
 3     (11)  Any document or instrument whereby owners partition
 
 4           their property, whether by mutual agreement or judicial
 
 5           action; provided that the value of each owner's
 
 6           interest in the property after partition is equal in
 
 7           value to that owner's interest before partition;
 
 8     (12)  Any document or instrument between marital partners or
 
 9           reciprocal beneficiaries who are parties to a divorce
 
10           action or termination of reciprocal beneficiary
 
11           relationship that is executed pursuant to an order of
 
12           the court in the divorce action or termination of
 
13           reciprocal beneficiary relationship;
 
14     (13)  Any document or instrument conveying real property from
 
15           a testamentary trust to a beneficiary under the trust;
 
16     (14)  Any document or instrument conveying real property from
 
17           a grantor to the grantor's revocable living trust, or
 
18           from a grantor's revocable living trust to the grantor
 
19           as beneficiary of the trust;
 
20     (15)  Any document or instrument conveying real property, or
 
21           any interest therein, from an entity that is a party to
 
22           a merger or consolidation under chapter 415, 415A,
 
23           415B, 421, 421C, or 428 to the surviving or new entity;
 
24           [and]
 

 
Page 4                                                     2252
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1     (16)  Any document or instrument conveying real property, or
 
 2           any interest therein, from a dissolving limited
 
 3           partnership to its corporate general partner that owns,
 
 4           directly or indirectly, at least a ninety per cent
 
 5           interest in the partnership, determined by applying
 
 6           section 318 (with respect to constructive ownership of
 
 7           stock) of the federal Internal Revenue Code of 1986, as
 
 8           amended, to the constructive ownership of interests in
 
 9           the partnership[.]; 
 
10     (17)  Any document or instrument conveying real property from
 
11           a parent corporation to a wholly-owned subsidiary of
 
12           that corporation or from a wholly-owned subsidiary to
 
13           its parent corporation;
 
14     (18)  Any document or instrument conveying real property or
 
15           any interest therein that is executed pursuant to a
 
16           conversion of a general partnership or a limited
 
17           partnership to a limited liability company, and vice
 
18           versa;
 
19     (19)  The interest in real property owned by a transferor who
 
20           is an individual, conveyed by any document to a
 
21           corporation or limited liability company that is wholly
 
22           owned by the:
 
23           (A)  Individual transferor;
 

 
Page 5                                                     2252
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           (B)  Individual transferor and the transferor's spouse;
 
 2           (C)  Individual transferor and the transferor's
 
 3                children; or
 
 4           (D)  Individual transferor, the transferor's spouse,
 
 5                and the transferor's children.
 
 6           For purposes of this paragraph, reference to the
 
 7           transferor, transferor's spouse, and transferor's
 
 8           children shall include the individual's revocable
 
 9           living trust; and
 
10     (20)  The interest in real property owned by a transferor who
 
11           is an individual, conveyed by any document to a
 
12           partnership or limited liability partnership that is
 
13           composed of the individual transferor and the:
 
14           (A)  Transferor's spouse;
 
15           (B)  Transferor's children; or
 
16           (C)  Transferor's spouse and the tranferor's children.
 
17           For purposes of this paragraph, reference to the
 
18           transferor, transferor's spouse, and transferor's
 
19           children shall include the individual's revocable
 
20           living trust."
 
21      SECTION 2.  Statutory material to be repealed is bracketed.
 
22 New statutory material is underscored.
 
23      SECTION 3.  This Act shall take effect on July 1, 2000.