HI HB1408

Establishes a new controlling interest transfer tax on sales or transfers of more than 50% interest in limited liability companies that hold real property in Hawaii valued at $2,000 or more.

Tax rates range from $0.10 per $100 of property value (less than $600,000) to $1.00 per $100 ($10,000,000 or greater), with higher rates for residential property where purchaser is ineligible for county homeowner's exemption.

Exempts transfers that constitute a mere change in identity or form of ownership with no change in beneficial ownership, and transfers of property in enterprise zones.

Requires entity transferring controlling interest to file return with Director of Taxation within 30 days of the transfer and maintain records of all controlling interest transfers.

Violations subject to penalties under state law and misdemeanor charges; effective upon approval for taxable years beginning after December 31, 2010.