HRS §236D-3.5
Tax on generation-skipping transfers and credit for other states
This section imposes a Hawaii tax on generation-skipping transfers of property located in Hawaii or from a resident trust. The tax equals the federal credit amount. If another state also taxes the transfer, Hawaii gives a credit for tax paid to that other state, up to certain limits.
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The statute, as written — Generation-skipping transfers; tax imposed; credit for tax paid other state
(a) A tax in an amount equal to the federal credit is imposed on every generation-skipping transfer of: (1) Property located in this State; and (2) Property from a resident trust. (b) If the generation-skipping transfer is subject in another state to a similar tax and qualifies for the federal credit, the amount of the tax due under this section shall be credited with the lesser of: (1) The amount of the tax paid to the other state and credited against the federal tax; or (2) An amount computed by multiplying the federal credit by a fraction, the numerator of which is the value of the property subject to the generation-skipping transfer tax paid to the other state, and the denominator of which is the value of all property subject to the federal generation-skipping transfer tax. If paragraph (1) or (2) results in an amount less than the total federal credit allowed being paid to all states which may claim any part of the credit, then the interested states may agree to a fair and equitable apportionment of the credit without regard to the residence of the trust.
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