Gives “the 1%” a whole new meaning.
As of the moment, two Hawaii real estate sales tax bills are making progress at the Legislature. One is HB698 in the House. The other is SB1145 in the Senate. The bills would increase conveyance taxes on single-family homes and condominiums worth two million dollars or more. For example, the Senate Bill would add 1% tax based on sales price, over and above existing tax rates.
The additional tax revenue would go to all counties via the Rental Housing Revolving Fund to be used for the development of affordable housing programs, but the specifics are unknown.
Both the Hawaii Association of Realtors® (“Hawai’i Realtors®”) and the Land Use Research Foundation of the University of Hawaii (“LURF”) oppose the new tax.