Instructions For Form P-64a And Form P-64b - To Pay The Conveyance Tax/to Request An Exemption From The Conveyance Tax
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4INSTRUCTIONS
STATE OF HAWAII — DEPARTMENT OF TAXATION
FORM P-64A
INSTRUCTIONS FOR FORM P-64A
FORM P-64B
(REV. 2012)
AND FORM P-64B
AND
GENERAL INFORMATION
(2) For the sale of a condominium or single family residence for
NOTE: Effective July 1, 2012, civil unions are recognized in Hawaii.
which the purchaser is ineligible for a county homeowner’s ex-
Act 1, Session Laws of Hawaii 2011, provides that provisions that
emption on property tax:
apply to a husband and wife, spouses, or person in a legal marital
• Fifteen cents ($.15) per $100 of the actual and full consideration
relationship shall be deemed to apply to partners in a civil union
with the same force and effect as if they were “husband and wife”,
for properties with a value of less than $600,000
“spouses”, or other terms that describe persons in a legal marital
• Twenty-five cents ($.25) per $100 of the actual and full consid-
relationship.”
eration for properties with a value of at least $600,000, but less
than $1,000,000
What Is the Conveyance Tax
• Forty cents ($.40) per $100 of the actual and full consideration
The conveyance tax is imposed on all transfers of ownership or
for properties with a value of at least $1,000,000, but less than
interest in real property through deeds, leases, subleases, assign-
$2,000,000
ments of lease, agreements of sale, assignments of agreements of
• Sixty cents ($.60) per $100 of the actual and full consideration
sale, instruments, writings, or other documents, unless the transfer
for properties with a value of at least $2,000,000, but less than
is specifically exempted. The conveyance tax is imposed regard-
$4,000,000
less of whether a document is recorded or not.
• Eighty-five cents ($.85) per $100 of the actual and full consider-
For Conveyance Tax Purposes, What Is a Transfer of
ation for properties with a value of at least $4,000,000, but less
Ownership or Interest in Real Property
than $6,000,000
Transfers of ownership or interest in real property through deeds,
• One dollar and ten cents ($1.10) per $100 of the actual and full
leases, subleases, assignments of lease, agreements of sale, as-
consideration for properties with a value of at least $6,000,000
signments of agreements of sale, instruments, writings, or other
but less than $10,000,000
documents include, but are not limited to a: (a) sale of real prop-
• One dollar and twenty-five cents ($1.25) per $100 of the actual
erty interest, (b) contribution of a real property interest by a share-
and full consideration for properties with a value of $10,000,000
holder, member, partner, or grantor to a corporation, limited liability
or greater
company/limited liability partnership, partnership, or trust, (c) dis-
The conveyance tax imposed for each transaction shall be not less
tribution of a real property interest from a corporation, limited li-
than one dollar ($1.00).
ability company/limited liability partnership, partnership, or trust to
its shareholder, member, partner, or beneficiary/trustee/grantor, (d)
Actual and full consideration is the price or amount (whether cash
gift of real property interest, (e) payment for goods and/or services
or otherwise) actually paid or required to be paid for real property
or payment of debt in the form of a real property interest, and (f)
including the value of any liens or encumbrances thereon at the
lease, sublease, or timeshare interest whose full unexpired term is
time of sale, lease, sublease, assignment of lease, agreement of
for a period of five or more years.
sale, assignment of agreement of sale, transfer, or conveyance.
Consideration is not limited to cash and includes any promise, act,
Who Is Subject to the Conveyance Tax
forbearance, property, interest, value, gain, advantage, benefit, or
The person subject to the conveyance tax is generally the grantor,
profit offered by one party to another in return for the other party’s
lessor, sublessor, assignor, transferor, seller, conveyor, or any other
act or promise. Consideration other than cash consideration in-
person conveying the real property interest.
cludes (a) tangible personal property, e.g., furniture and equipment,
(b) an increase in the value of stock or of a partnership, limited li-
How Is the Conveyance Tax Determined
ability partnership, or limited liability company interest, (c) a release
The conveyance tax is payable on the actual and full consideration
from or assumption of indebtedness, e.g., mortgages, loans, and
actually paid or ultimately required to be paid; it is immaterial for
liens, (d) the fair market value of any properties exchanged, (e)
purposes of the conveyance tax, that the transfer or conveyance
the value of any increase in lease rent, or (f) any other economic
resulted in a gain or loss. The tax is calculated by multiplying the
benefit.
actual and full consideration by the following rates:
General Filing and Payment Requirements
(1) Except as provided in paragraph (2):
Although the Conveyance Tax Law is administered by the
• Ten cents ($.10) per $100 of the actual and full consideration for
Department of Taxation (Department), forms and payments are
properties with a value of less than $600,000
generally submitted to the Bureau of Conveyances (BOC), which
• Twenty cents ($.20) per $100 of the actual and full consideration
is part of the Department of Land and Natural Resources. The
for properties with a value of at least $600,000, but less than
person subject to the conveyance tax must complete and file Form
$1,000,000
P-64A, Conveyance Tax Certificate, and pay the conveyance tax
• Thirty cents ($.30) per $100 of the actual and full consideration
due to the BOC no later than 90 days after the date of transaction
for properties with a value of at least $1,000,000, but less than
regardless of whether the document will be recorded or not; other-
$2,000,000
wise, penalty and interest will be assessed.
• Fifty cents ($.50) per $100 of the actual and full consideration
Form P-64B, Exemption from Conveyance Tax, must be completed
for properties with a value of at least $2,000,000, but less than
to request certain exemptions from the conveyance tax. Depending
$4,000,000
on the type of transaction, Form P-64B must either be (1) submit-
• Seventy cents ($.70) per $100 of the actual and full consideration
ted to the Department of Taxation, Technical Section for approval of
for properties with a value of at least $4,000,000, but less than
the exemption, or (2) filed directly with the Bureau of Conveyances.
$6,000,000
Penalty and Interest
• Ninety cents ($.90) per $100 of the actual and full consideration
Section 231-39, Hawaii Revised Statutes (HRS), provides for the
for properties with a value of at least $6,000,000 but less than
assessment of a late filing penalty of 5% of the tax due for each
$10,000,000
month or part of a month that Form P-64A is filed late, i.e., beyond
• One dollar ($1.00) per $100 of the actual and full consideration
90 days after the date of transaction, up to a maximum of 25%.
for properties with a value of $10,000,000 or greater
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