H.B. 207 Summary

• Amends Hawaii estate tax by adding a new tax bracket for estates exceeding $10,000,000, taxing amounts over $10,000,000 at 20% (with a base tax of $1,385,000 plus 20% of the amount exceeding $10,000,000), effective for decedents dying after December 31, 2017.

• Raises conveyance tax rates for single-family residential properties (investment properties where purchaser is ineligible for homeowner's exemption) valued at $2,000,000 or more, increasing rates from 60 cents to $1 per $100 (at $2-4 million), from 85 cents to $2 per $100 (at $4-6 million), from $1.10 to $3 per $100 (at $6-10 million), and from $1.25 to $4 per $100 ($10 million or more), effective January 1, 2019.

• Establishes legislative finding that federal estate tax threshold increases provide Hawaii an opportunity to capture estate tax revenue that will no longer be paid to federal government and redirect it to state priorities.