This is one of those topics that I should have some sirens going: Alert, alert, alert! Many of you have heard the news about the California Mansion tax, which kicked in on April 1st, and basically the state of California is trying to raise money for homeless housing, affordable housing, and they think the best way to do that is to tax the rich. They’re going to impose a 4% tax any property that is sold over 5 million and any property sold over 10 million will get hit with a 5.5% tax.
So, if you sold your house for $5 million and you got hit with a 4% tax, you’re writing a check to the state of California for $200,000.
Now you’re asking, what does this have to do with Hawaii? Well, let me tell you folks, Hawaii follows California almost to the “T”. Everything California does Hawaii thinks is a great idea and follows closely behind. In fact, this legislative session here, there have been many ideas floated and proposed, and bills talked about about whether or not the state of Hawaii should do the same, if they should do a mansion tax as well.
Acouple of years ago Hawaii did do a tax on luxury properties. These properties were taxed at a much higher level than everybody else. Listen, folks, I can tell you that this is coming, right? I can almost assure you it’s coming. The Hawaii legislature never saw a tax they didn’t like, so it’s coming and I just wanted to make you aware of it. It’s a ripple down effect. So if you’re thinking about selling in the next six months, year, whatever it may be, contact us here at the Hawaii team, we’d love to help you and maybe avoid some serious taxes or tax consequences.
Contact us at (808) 913-0899 or team@thehawaiiteam.com.