HI HB1121

Excludes 100 percent of capital gains from income taxation when a fee simple owner sells leased fee interest in condominium, cooperative, or planned unit development units to the association of apartment owners or residential cooperative housing corporation.

Applies to taxable years beginning after December 31, 2022, and expires after December 31, 2029.

Reestablishes a previous tax exemption that was enacted as Act 166 (Session Laws of Hawaii 2007) and sunset on December 31, 2012, intended to encourage landowners to sell the fee interest in leasehold units.

Defines key terms including "condominium project," "cooperative project," "fee simple owner," and "leased fee interest" by reference to Hawaii Revised Statutes sections 514C-1 and 516-1.

Takes effect July 1, 3000 (appears to be a drafting error; bill text also specifies application to taxable years beginning after December 31, 2022).