Haw. Code R. § 18-247-2 - Basis and rate of tax
(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.
Notes
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