HB1180 Summary

• Imposes Hawaii conveyance tax on transfers of a controlling interest (50% or more ownership) in any entity that owns real property located in Hawaii when such transfer results in a change of control or ownership of the real property.

• Excludes from conveyance tax any transfer where there is no change in beneficial ownership, including transfers between entities with the same common ownership.

• Aggregates multiple acquisitions within a 12-month period by persons "acting in concert" to determine if a controlling interest was transferred; requires the director to adopt rules defining when persons are considered to be acting in concert.

• Applies conveyance tax at the lowest rate to mergers, consolidations, dissolving partnerships transferring to corporate general partners with at least 90% interest, transfers to Hawaii housing finance and development corporation certified organizations, and transfers to or from wholly-owned corporations or limited liability companies.

• Takes effect July 1, 2011.