Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 247 - CONVEYANCE TAX
Section 18-247-2 - Basis and rate of tax
Current through August, 2023
(a) The tax imposed by chapter 247, HRS, aforesaid (hereinafter referred to as "Conveyance Tax"), shall be based on the actual and full consideration, and shall be at the rate of five cents ($.05) on each one hundred dollars ($100) of such actual and full consideration; provided, however, that in the case of a lease or sublease the provisions of the conveyance tax law shall apply only to a lease or sublease whose full unexpired term is for a period of five years or more, and in those cases, including where appropriate those cases where the lease has been extended or amended, the tax herein shall be based on the cash value of the lease rentals discounted to present day value and capitalized at the rate of six percent (6%), plus the actual and full consideration paid or to be paid for any and all improvements, if any, which shall include on site as well as off site improvements, applicable to the leased premises; and provided further, that the conveyance tax imposed for each transaction shall be not less than one dollar ($1.00).
(b) In exchange of properties, the consideration shall be the market value of all properties exchanged plus any other consideration. In assignments of leases, the tax shall be based on the actual and full consideration paid for the leasehold and the value of any increase in lease rental discounted to present value.
(c) A schedule showing the amount of tax applicable to the actual and full consideration paid is attached hereto, marked Appendix I, and made a part hereof and examples of how to compute the lease rent when there is an extension of term or increase in length, marked Appendix II.
[Eff 2/16/82] (Auth: HRS §§ 231-3(9), 247-9) (Imp: HRS § 247-2)