STAND. COM. REP. NO. 1229

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 167
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred S.C.R. No. 167 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE COUNTIES TO
     ENACT ORDINANCES TO IMPLEMENT A SYSTEM OF LAND VALUE
     TAXATION IN EACH COUNTY,"

begs leave to report as follows:

     The purpose of this measure is to request the counties to
enact ordinances to implement a system of land value taxation in
each county.

     Testimony in support of this measure was received from the
International Brotherhood of Electrical Workers, Local Union
1186.

     Your Committee finds that a land value tax system would levy
a tax on the value of the land rather than the value of
structures or improvements on the land.  A land value tax would
encourage developers and owners to develop and make improvements
on the land.  In addition, a land value tax would deter
speculative land holding and reduce the bureaucracy encountered
in collecting and paying property related taxes.  Therefore, your
Committee finds that each county should enact ordinances to
implement a system of land value taxation in the form of pilot
programs to determine its feasibility.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for purposes of style.

 
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                                   STAND. COM. REP. NO. 1229
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee concurs with the intent
and purpose of S.C.R. No. 167, as amended herein, and recommends
that it be referred to the Committee on Ways and Means, in the
form attached hereto as S.C.R. No. 167, S.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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