Hawaii Real Estate State Practice Exam

If an owner-occupied property sells for $760,000, what is the conveyance tax?

1. $760

2. $1140

3. $1520

4. $1900

The correct answer is: $1520

The conveyance tax is calculated based on the sale price of the property and follows a specific structure in Hawaii. For residential real property transferred from one owner to another, there's a standard rate applied to the sale price, which is tiered based on the price brackets. In this case, for a property selling for $760,000, the first $600,000 is taxed at a lower rate and any amount above that price is taxed at a higher rate. The tax calculation typically looks something like this: 1. The first $600,000 may be taxed at a rate of $0.10 per $100 or $1 for every $1,000. This results in a tax of $600 for this portion. 2. The remaining $160,000 (the amount above $600,000) is taxed at a higher rate, which may be $0.15 per $100, resulting in a tax of $240 for this portion. When you add those amounts together: - For the first $600,000: $600 - For the remaining $160,000: $240 So, the total conveyance tax would be $600 + $240, which equals $840. The answer provided does not match this calculation