The Conveyance Tax increase, aka The Legacy Lands Act (HB1308) was signed into law by Gov. Linda Lingle in June and became effective July 1, 2005.
Under the new law a seller or transferor of real property is assessed $0.10 per $100 on sales up to $600,000, $0.20 per $100 on sales of $600,000 to $1,000,000 and $0.30 per $100 on sales above $1,000,000.
The median price in May for a home on Oahu in was $610,000, Maui $780,000 and Kauai $665,000. Median means that half the homes sold were above that price and half were below. Only on the Big Island was the median price below the tax increase threshold. Many sellers in Hawaii will now be paying more in conveyance taxes. But there