SB3028 Restructures Conveyance Tax to Marginal Rates
Summary
The Hawaii State Senate passed SB3028, restructuring the state's conveyance tax from a flat rate to a marginal rate system for residential property sales. The bill adjusts tax calculations for multifamily properties on a per-unit basis and applies cost-of-living adjustments to tax rates. Proceeds are allocated to the Dwelling Unit Revolving Fund, Hawaiian Home Lands Infrastructure and Housing Special Fund, and Special Land and Development Fund.
What changed
SB3028 transforms Hawaii's conveyance tax framework by replacing flat-rate taxation with a marginal rate structure graduated by property value for residential conveyances. Multifamily property taxes will now be calculated based on per-unit value rather than aggregate property value, creating different assessment bases for developers and investors.
Real estate sellers and buyers in Hawaii should anticipate variable transaction costs dependent on property valuation tiers rather than uniform rates. Developers acquiring or selling multifamily assets face altered cost calculations that could affect investment pro formas and deal structuring. The directed allocations to housing funds indicate state policy prioritizing affordable housing development using conveyance tax revenues.
What to do next
- Monitor for final enactment and governor signature to confirm effective date
- Review transaction cost structures for residential and multifamily property sales in Hawaii
- Consult tax counsel regarding marginal rate applicability thresholds
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
ChangeBridge / Hawaii / SB3028 Passed SB3028 Senate Bill Passed 2026-03-10
Relating To Property Conveyance.
Restructures the conveyance tax to a marginal rate system for the sale of properties with residential use, adjusts the tax for multifamily properties to reflect value on a per-unit basis, and applies a cost-of-living adjustment to conveyance tax rates. Allocates a portion of conveyance tax collections to the Dwelling Unit Revolving Fund, Hawaiian Home Lands Infrastructure and Housing Special Fund, and Special Land and Development Fund. Establishes and appropriates funds out of the Hawaiian Home Lands Infrastructure and Housing Special Fund. Effective 7/1/3000. (HD1)
Bill Details
State Hawaii
Session 2026 Regular Session
Chamber Senate
Official Source www.capitol.hawaii.gov/session/measure_ind...
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Sponsors
Chris Lee (Sen - D)
Action History
2026-04-07 H The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Miyake, Morikawa, Perruso, Templo, Yamashita; Ayes with reservations: Representative(s) Lee, M., Gedeon; 2 Noes: Representative(s) Alcos, Reyes Oda; and Excused: none. 2026-04-02 H Bill scheduled for decision making on Tuesday, 04-07-26 10:10AM in conference room 308 VIA VIDEOCONFERENCE. 2026-04-02 H The committee(s) on FIN recommend(s) that the measure be deferred until 04-07-26. 2026-03-31 H Bill scheduled to be heard by FIN on Thursday, 04-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. 2026-03-25 H Re-referred to HSG, FIN, referral sheet 21 2026-03-20 H Passed Second Reading as amended in HD 1 and referred to the committee(s) on WAL with none voting aye with reservations; Representative(s) Alcos, Cochran, Garcia, Gedeon, Matsumoto, Muraoka, Pierick, Reyes Oda voting no (8) and Representative(s) Quinlan excused (1). 2026-03-20 H Reported from HSG (Stand. Com. Rep. No. 1310-26) as amended in HD 1, recommending passage on Second Reading and referral to WAL. 2026-03-18 H The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica; Ayes with reservations: none; 3 Noes: Representative(s) Cochran, Muraoka, Pierick; and Excused: none. 2026-03-16 H Bill scheduled to be heard by HSG on Wednesday, 03-18-26 9:00AM in House conference room 430 VIA VIDEOCONFERENCE. 2026-03-12 H Referred to HSG, WAL, FIN, referral sheet 17 2026-03-12 H Pass First Reading 2026-03-10 H Received from Senate (Sen. Com. No. 345) in amended form (SD 2). 2026-03-10 S Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. 2026-03-06 S 48 Hrs. Notice 03-10-26. 2026-03-06 S Reported from WAM (Stand. Com. Rep. No. 2999) with recommendation of passage on Third Reading, as amended (SD 2). 2026-03-03 S The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. 2026-02-25 S The committee(s) on WAM deferred the measure until 03-03-26 10:15AM; Conference Room 211 & Videoconference. 2026-02-23 S The committee(s) on WAM will hold a public decision making on 02-25-26 10:57AM; Conference Room 211 & Videoconference. 2026-02-20 S Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. 2026-02-20 S Reported from WLA/EIG (Stand. Com. Rep. No. 2596) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. 2026-02-17 S The committee(s) on WLA recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WLA were as follows: 4 Aye(s): Senator(s) Lee, C., Chang, Lamosao, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Inouye. 2026-02-17 S The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EIG were as follows: 5 Aye(s): Senator(s) Wakai, Chang, DeCoite, Richards, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. 2026-02-13 S The committee(s) on WLA/EIG has scheduled a public hearing on 02-17-26 3:03PM; Conference Room 224 & Videoconference. 2026-01-30 S Referred to WLA/EIG, WAM. 2026-01-26 S Passed First Reading. 2026-01-23 S Introduced.
Votes
2026-02-17 Senate Energy and Intergovernmental Affairs: Passed, With Amendments Yea: 5 Nay: 0 2026-02-17 Senate Water, Land, and Agriculture: Passed, With Amendments Yea: 4 Nay: 0 2026-03-03 Senate Ways and Means: Passed, With Amendments Yea: 12 Nay: 0
Committee Referrals
2026-01-30 S Water, Land, and Agriculture 2026-02-20 S Ways and Means 2026-03-12 H Housing 2026-03-20 H Water & Land 2026-03-25 H Housing 2026-03-31 H Finance
Bill Text Versions
2026-01-24 Introduced 2026-02-19 Amended 2026-03-06 Amended 2026-03-20 Amended
Subjects
Conveyance Tax Special Land and Development Fund Dwelling Unit Revolving Fund Infrastructure Funding County-designated Transit-oriented Development Hawaiian Home Lands Infrastructure and Housing Special Fund Land Acquisition Trails Appropriation Legislative data powered by LegiScan (CC BY 4.0)
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