STAND. COM. REP. NO. 303-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2252
                                     




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2252 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to amend Hawaii Revised
Statutes (HRS) section 247-3 to exempt from the conveyance tax
documents or instruments that:

     (1)  merely change the identity or form of ownership of
          realty or any interest therein without changing the
          beneficial ownership of the realty interest; and

     (2)  convey realty or any interest therein to a corporation
          or partnership which is wholly owned by the transferor;
          the transferor and the transferor's spouse; or by the
          transferor, the transferor's spouse, and the
          transferor's children.

     Testimony in support of this measure was submitted by a
private law firm.

     Testimony in opposition to this measure was submitted by the
Tax Foundation of Hawaii.

     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

 
 
                                 STAND. COM. REP. NO. 303-00
                                 PAGE 2

 
purpose of H.B. No. 2252 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