Conveyance Tax Increase for Sellers of Luxury Homes on Oahu
Thu, April 23, 2009
By Yvonne Ahearn (B), Realtor-Broker in Boring but Important, Local News, conveyance tax hawaii, conveyance tax of hawaii homes, luxury homes oahu, luxury real estate on oahu, oahu conveyance tax, oahu conveyance taxes, oahu taxes, real property tax hawaii, real property tax oahu

UPDATE: The Governor Did Sign This Into Law.
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Yesterday, the Hawaii Legislature passed House Bill 1741 which (among many other things) aims to increase the conveyance taxes on the seller for the sale of properties priced at $2 Million and more. If Governor Lingle signs this bill, conveyance taxes will go from the current tiered structure, for owner-occupied homes, ranging from 10 cents to 30 cents per 100 dollars in purchase price:

OLD

10 cents per $100 - Property Price $0-$599,999 (15 cents for non-owner occupied)
20 cents per $100 - Property Price $600,000 - $999,999 (25 cents for non-owner occupied)
30 cents per $100 - Property Price $1M and up (35 cents for non-owner occupied)

to a new structure, that raises taxes to 50 cents to a dollar per $100, for owner-occupied purchases fo homes priced at $2M or more, and 60 cents to $1.25 for purchasers of these homes living elsewhere.

NEW
10 cents per $100 - Property Price $0-$599,999 (15 cents for non-owner occupied)
20 cents per $100 - Property Price $600,000 - $999,999 (25 cents for non-owner occupied)
30 cents per $100 - Property Price $1M - $1,999,999 (40 cents for non-owner occupied)
50 cents per $100 - Property Price $2 M - $3,999,999(60 cents for non-owner occupied)
70 cents per $100 - Property Price $4 M - $5,999,999(85 cents for non-owner occupied)
90 cents per $100 - Property Price $6 M - $9,999,999($1.10 for non-owner occupied)
$1 per $100 - Property Price $10 M and up ($1.25 cents for non-owner occupied)

So, for a $2 Million owner-occupied home the conveyance tax would increase $6,000 to $10,000, or 67%. For a non-ower occupied home of $2M the tax would increase from $7,000 to $12,000, or 71%.

For a $10 Million owner-occupied home the tax would increase from $30,000 to $100,000, or 233%. For a non-ower occupied home of $10M the tax would increase from $35,000 to $125,000, or 257%.

http://www.capitol.hawaii.gov/session2009/Bills/HB1741_sd1_.pdf

You may ask, why is the SELLER responsible for more taxes when the BUYER is an investor? Good question - that is a factor that Sellers may wish to consider and possibly, negotiate with an investor/buyer in a transaction.

Stay tuned to hear what happens.

Article originally appeared on Kailua Real Estate and Oahu Homes For Sale (http://www.homeshoppehawaii.com/).
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