HI SB22

Clarifies that the sale, transfer, or exchange of stock in a legal entity that owns or controls Hawaii realty shall be deemed a conveyance of realty subject to state conveyance tax when executed with an unrelated entity or individual.

Conveyance tax on stock transfers is calculated based on the lesser of the most recent county real property tax assessed value or a current qualified appraisal by a licensed real estate appraiser.

Exempts transfers where there is no change in beneficial ownership, including transfers to entities wholly owned by the same common ownership as the transferor.

Exempts transfers from a limited partner to a general partner of a limited partnership that owns an affordable rental housing project funded with low-income housing tax credits under federal or state law.

Defines "controlling interest" as 50% or more of voting power or capital/beneficial interest in a corporation, partnership, association, trust, or other entity; defines "unrelated entity or individual" as one lacking controlling interest prior to transfer or within a twelve-month period.

Effective July 1, 2013.