HB1850 Summary: Conveyance Tax on Controlling Interest Transfers

• Imposes conveyance tax on transfers or acquisitions of controlling interests (50% or more ownership) in entities that own real property in Hawaii, effective for conveyances after June 30, 2015.

• Defines "controlling interest" as 50% or more of voting stock in a corporation or 50% or more of capital, profits, or beneficial interest in partnerships, trusts, or other entities.

• Tax rates range from 10 cents to $1.00 per $100 of consideration depending on transaction amount, with higher rates (15 cents to $1.25 per $100) for condominiums and single-family residences where purchaser is ineligible for homeowner property tax exemption.

• Provides exemptions including transfers between family members, transfers within mergers or consolidations, transfers of cooperative housing stock in connection with occupancy rights, and transfers between owners who each held 3+ years of ownership interest in the entity.

• Requires grantors and grantees to file certificates of conveyance detailing consideration and transaction details within 90 days; establishes 3-year assessment period and confidentiality protections for filed certificates.