Hawaii Tax Increase Clause

State:
Multi-State
Control #:
US-OL19033GA
Format:
Word; 
PDF
Instant download

Description

This form is a clause regarding additional rent element of an office lease providing for tax increases. The tax increases pertain to assessments and special assessments levied, assessed or imposed upon the building and/or the land under, including any land(s) dedicated to the use of, the building, by any governmental bodies or authorities.

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FAQ

HARPTA Relief The Seller may be exempt from the five percent withholding if he can provide the Buyer with a Hawaii Resident Certification.

You can file form N15 to obtain your refund. If you sell your property in April, the N15 tax form for that year will not be available until January of the following year--just like most income tax returns. Fortunately, Hawaii also offers form N288C which can be completed and filed to get your money back much sooner!

?The City & County of Honolulu has enacted some changes with property taxes that became effective on July 1, 2023 The good news is: the tax rate for a primary residence did not change. That rate is still $3.50 per $1,000 of assessed value. But there were tax rate changes on Investment properties, and there are 2 tiers.

HARPTA Relief The Seller may be exempt from the five percent withholding if he can provide the Buyer with a Hawaii Resident Certification.

In the State of Hawaii, the Hawaii Real Property Tax Act (referred to as HARPTA) is a mechanism that requires the withholding of 7.25% of the amount realized, generally the sales price, when a non-Hawaii resident sells real estate.

Under the Hawaii withholding requirement, the buyer or transferee of any Hawaii real estate is required to (i) withhold and deduct a tax equal to 5% of the amount realized by the seller or transferor upon the disposition of the property and (ii) file Forms N-288 and N-288A to report and transmit the amount withheld to ...

File a Form N-288B (with Form N-103 included if applicable) in a timely manner prior to closing to avoid HARPTA withholding altogether if you qualify. Or, maybe you qualify for an N-289 exemption? Alternatively, you may need to file a Form N-288C to get your money back? if you don't qualify for an exemption.

For the business to recover exactly what it needs to pay the State, the business will charge 4.712%. Thus, if the business charged $4.71 and the customer paid $104.71, its tax would be 4.5% of $104.71, which works out to $4.71, and the business is left with its $100 sales price.

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Hawaii Tax Increase Clause