HI SB884

Excludes 100% of capital gains from the sale of leased fee interest in condominium, cooperative, or planned unit development units to the association of apartment owners or residential cooperative housing corporation from state income taxation.

Applies to taxable years beginning after December 31, 2022 and ending prior to January 1, 2030, with the provision automatically repealing on January 1, 2030.

Reestablishes a previous tax incentive that expired in 2012 (Act 166, Session Laws of Hawaii 2007) to encourage fee simple owners to sell the fee interest in leasehold units to unit associations.

Defines key terms including condominium project, cooperative project, fee simple owner, leased fee interest, and legal and equitable owners by reference to existing Hawaii statutes.

Takes effect on July 1, 2050 (though applies retroactively to tax years beginning after December 31, 2022).