STAND. COM. REP. NO. 702

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 117
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 117 entitled: 

     "A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"

begs leave to report as follows:

     The purpose of this bill is to exempt certain transfers from
the application of the conveyance tax.

     Specifically, this bill amends section 247-3, Hawaii Revised
Statutes, to exempt an instrument that merely changes the
identity or form of ownership of real property without changing
the beneficial ownership or interest, or conveys realty to a
corporation or partnership which is wholly owned by the tranferor
and specified family members.

     Informational comments were received from the Department of
Taxation and the Tax Foundation of Hawaii.

     Your Committee finds that these limited exemptions are
favorable to small business in general, and family-owned
businesses in particular, and would have a minimal impact on
revenues.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and

 
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                                 STAND. COM. REP. NO. 702
                                 Page 2

 
purpose of H.B. No. 117 and recommends that it pass Second
Reading and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair

 
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