Oracle CEO, Larry Ellison, Buys 98% of Island of Lanai, Seller (Castle & Cooke Inc.) will Pay no Conveyance Tax

It has been widely reported that Oracle’s CEO, Larry Ellison, will buy 98% of the Hawaiian island of Lanai (about 88,000 acres) for around $500 million.    Pacific Business News reported that neither Ellison nor the Seller, Castle & Cooke Inc., will pay any real property conveyance tax to the state because Ellison is purchasing the companies that own the island, not the island itself.  In other words, legal title to the land will not transfer.  Kudos to their tax counsel.  They saved their clients about $6.25 million in conveyance tax, 1.25%, on the $500 million deal.

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