HB 2075 Summary

• Imposes conveyance tax on transfers of controlling interest (50% or more ownership) in entities that hold real property in Hawaii, treating such transfers equivalently to direct real property sales.

• Defines "controlling interest" as 50% or more of voting power in corporations or 50% or more of capital/profits/beneficial interest in partnerships, associations, trusts, or other entities.

• Exempts transfers between commonly-owned entities with no change in beneficial ownership, and transfers from limited partners to general partners of limited partnerships owning affordable housing projects with low-income housing tax credits.

• Applies conveyance tax at the lowest rate regardless of property value to mergers/consolidations, dissolutions of limited partnerships to controlling corporate partners (90%+ ownership), and transfers to/from wholly-owned corporations or LLCs.

• Takes effect January 1, 2013.