HI HB2148

Imposes a 3% unrealized gains surcharge on property transfers where the fair market value exceeds the transferee's basis by $2,000,000 or more, with estates required to report transfers within 30 days.

Exempts bona fide farms and small businesses that remain in operation with a relative of the transferor, unless the property is sold within two years.

Lowers the estate tax exclusion amount to $3,000,000 (adjusted annually for Honolulu CPI) for estates that do not include an owner-occupied residence or bona fide farm.

Maintains the federal applicable exclusion amount for estates that include an owner-occupied residence or bona fide farm.

Takes effect July 1, 3000, applying to decedents dying or taxable transfers occurring after December 31, 2025.