STAND. COM. REP. NO. 645-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1788
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1788 entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to encourage the construction
and renovation of buildings or improvements located or that will
be located:

     (1)  On property designated primarily for resort or hotel
          use by the applicable county zoning ordinance or plan;
          or

     (2)  On property not so designated, but the primary purpose
          of which is commercial or recreational use that
          supports or services a hotel or resort use (qualified
          resort facility).

     Specifically, this bill exempts from the general excise tax,
amounts received by a taxpayer as a portion of the gross proceeds
arising from any capitalized cost for construction and equipment
of a permanent nature related to a qualified resort facility,
including infrastructure costs.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1788 and recommends that it pass Second Reading and be placed on
the calendar for Third Reading.

 
                                 STAND. COM. REP. NO. 645-00
                                 Page 2

 

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair