HI SB2112

Extends the sunset date of Act 166, Session Laws of Hawaii 2007, from December 31, 2012 to January 1, 2018, allowing the income tax exemption on capital gains from leasehold conversions to continue for an additional five years.

Maintains the one hundred percent income tax exemption on capital gains realized from sales of leased fee interest in condominium units to associations of apartment owners or residential cooperative corporations.

Addresses the expiration of over 1,250 condominium unit leases in Honolulu's urban district between 2012-2015, and over 100 units on the island of Hawaii expiring in 2015, to encourage landowners to sell fee interests to lessees.

Repeals and reenacts Hawaii Revised Statutes section 235-7(a) on January 1, 2018, returning the tax code to its prior form unless further legislative action is taken.

Takes effect on July 1, 2050.