HB 1628 Summary

• Imposes Hawaii conveyance tax on transfers of a controlling interest (50% or more ownership) in an entity that holds real property in Hawaii, treating such transfers as equivalent to direct real property sales.

• Exempts transfers between entities with the same beneficial ownership and transfers where there is no change in beneficial ownership to prevent tax avoidance on restructurings.

• Defines "persons acting in concert" to aggregate multiple acquisitions within a 12-month period if purchasers are coordinated through common ownership or negotiate as a single entity.

• Applies conveyance tax at the lowest rate to mergers, consolidations, limited partnership dissolutions, low-income housing transfers, and wholly-owned corporation or LLC transfers.

• Effective date: July 1, 2024.