REPORT TITLE:
Conveyance tax exemption

DESCRIPTION:
Exempts certain transfers from the application of the conveyance
tax.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2252
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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
 
19           applicable, any assignment of the agreement of sale, or
 
20           assignments thereof; provided that the taxes under this
 

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

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

 
 
 
 
 
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 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 that merely changes the
 
11           identity or form of ownership of realty or any interest
 
12           therein without changing the beneficial ownership of
 
13           the realty or interest; and
 
14     (18)  Any document or instrument conveying realty or any
 
15           interest therein to a corporation or partnership that
 
16           is wholly owned by:
 
17           (A)  The transferor;
 
18           (B)  The transferor and the transferor's spouse; or
 
19           (C)  The transferor, the transferor's spouse, and the
 
20                transferor's children."
 
21      SECTION 2.  Statutory material to be repealed is bracketed.
 
22 New statutory material is underscored.
 

 
 
 
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 1      SECTION 3.  This Act shall take effect on July 1, 2000.
 
 2 
 
 3                           INTRODUCED BY:  _______________________