HI HB1410

Restructures Hawaii's conveyance tax from a flat-rate system to a marginal rate system, with higher rates applied only to property values exceeding specified thresholds, effective for transactions after December 31, 2025

Adjusts conveyance tax for multifamily residential properties (5+ units in urban districts) by calculating the per-unit value rather than total property value to prevent disproportionate tax burdens on affordable housing

Establishes a Supportive Housing Special Fund administered by the Hawaii Housing Finance and Development Corporation to finance affordable permanent housing and supportive services for individuals with special needs, funded by 8% of conveyance tax revenue (capped at $10,000,000 annually)

Allocates 10% of conveyance tax revenue to the Dwelling Unit Revolving Fund specifically for infrastructure programs in county-designated transit-oriented development areas meeting minimum density and permitting standards

Implements annual cost-of-living adjustments to conveyance tax thresholds using the Urban Hawaii Consumer Price Index, effective for taxable years after December 31, 2025, to maintain equity as property values increase