Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 540, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to encourage revitalization of older commercial districts in Hawaii by providing a tax credit in an unspecified amount for the cost of renovating commercial, retail, hotel, warehouse, or industrial facilities where the facility or commercial district in which the facility is located is at least 25 years old.

Your Committee received testimony in support of this bill from the Waikiki Improvement Association, Building Industry Association of Hawaii, Hawaii Construction Industry Association, American Institute of Architects, Pacific Resource Partnership, Hawaii Bankers Association, National Association of Industrial and Office Properties Hawaii, Institute of Real Estate Management, General Contractors Association of Hawaii, Paul Louie and Associates, Inc., Commercial Real Estate Coalition, Dowling Company, and five concerned individuals.

The Department of Taxation and Hawaii Tourism Authority supported the intent of the bill. Comments were provided by the Tax Foundation of Hawaii. The Hawaii chapter of the National Association of Industrial and Office Properties opposed the bill.

Your Committee has amended this measure by:

Technical, nonsubstantive amendments were also made for consistency and style.

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 S.B. No. 540, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 540, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.