What is one exemption from the conveyance tax in Hawaii?

What is one exemption from the conveyance tax in Hawaii?

• A. Transfers of property with consideration of $10 or less
• B. Conveyances with consideration of $100 or less
• C. All exchanges between family members
• D. Property sales involving commercial use

Answer: (B)

The correct choice highlights that conveyances with consideration of $100 or less are exempt from the conveyance tax in Hawaii. This provision is designed to facilitate certain low-value property transfers, which might include minor transactions between friends or relatives, ensuring that the tax burden does not prevent these small transfers from occurring. This exemption recognizes that routine conveyances at low values typically do not warrant the administrative expenses associated with tax collection, allowing for smoother and more cost-effective transactions. As a result, individuals transferring property at this minimal value can do so without incurring additional financial burdens. The other options do not correctly reflect the specific exemptions established in the law. Transfers of property with consideration of $10 or less might seem relevant but do not align with the established threshold. Family exchanges often carry their own set of rules and may not universally qualify for exemptions without consideration of the specific circumstances, and commercial property transfers typically involve tax obligations rather than exemptions.

The correct choice highlights that conveyances with consideration of $100 or less are exempt from the conveyance tax in Hawaii. This provision is designed to facilitate certain low-value property transfers, which might include minor transactions between friends or relatives, ensuring that the tax burden does not prevent these small transfers from occurring.

This exemption recognizes that routine conveyances at low values typically do not warrant the administrative expenses associated with tax collection, allowing for smoother and more cost-effective transactions. As a result, individuals transferring property at this minimal value can do so without incurring additional financial burdens.

The other options do not correctly reflect the specific exemptions established in the law. Transfers of property with consideration of $10 or less might seem relevant but do not align with the established threshold. Family exchanges often carry their own set of rules and may not universally qualify for exemptions without consideration of the specific circumstances, and commercial property transfers typically involve tax obligations rather than exemptions.