The latest draft of House Bill 58 would also adjust the state inheritance tax by reducing the dollar value of inheritance that is exempt from the tax. Currently estates of $5.49 million or less are exempt from the tax, but the bill would limit that exemption to estates totaling $3.5 million or less.
The proposed conveyance tax increase in the bill would apply to sales of non-owner occupant properties worth $4 million or more.
Properties worth more than $4 million would see their conveyance tax double, the tax on sales for more than $6 million would triple, and sales of properties worth more than $10 million would quadruple.
Supporters of the bill contend it would require Hawaiʻi’s wealthiest residents to pay a larger share of the cost of state government, making the tax system more fair.