STAND. COM. REP. 1067

Honolulu, Hawaii

, 2003

RE: S.B. No. 1517

S.D. 2

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred S.B. No. 1517, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENVIRONMENTAL PROTECTION,"

begs leave to report as follows:

The purpose of this bill is to support efforts to preserve and protect Hawaii's natural resources by:

(1) Increasing the percentage of conveyance tax revenue paid into the Natural Area Reserve Fund (Reserve Fund) to 35 percent;

(2) Clarifying that funds from the Reserve Fund shall be disbursed by the Department of Land and Natural Resources (DLNR) for natural area partnership and forest stewardship programs after joint consultation with the Forest Stewardship Committee and the Natural Area Reserves System Commission; and

(3) Including management of the Natural Area Reserves System and early detection and rapid response programs for invasive species in the list of programs that receive disbursements by DLNR from the Reserve Fund.

In addition, this bill:

 

(1) Increases the conveyance tax from 10 cents per $100 to 20 cents per $100 of the actual and full consideration on transfers or conveyances of realty valued at $600,000 or greater; and

(2) Increases the percentage of conveyance tax revenue paid into the Rental Housing Trust Fund (Trust Fund) to 35 percent.

Testimony in support of this bill was received from the Office of Hawaiian Affairs, Big Island Invasive Species Committee, 'Ahahui Malama I Ka Lokahi, Catholic Charities Hawaii Elderly Services, Conservation Council for Hawaii, East Maui Watershed Partnership, East Molokai Watershed Partnership, Hawaii Audubon Society, Hawaiian Botanical Society, 'Ilio'ulaokalani Coalition, Kahea: The Hawaiian-Environmental Alliance, Ko'olau Mountains Watershed Partnership, Maui Invasive Species Committee, Na Koa Ikaika, Na Leo Pohai, Coordinating Group on Alien Pest Species, Oahu Invasive Species Committee, Kauai Invasive Species Committee, Molokai Invasive Species Committee, The Hawaii People's Fund, The Nature Conservancy of Hawaii, The Trust for Public Land, Limu Coalition, and numerous concerned individuals. DLNR and the Land Use Research Foundation of Hawaii supported the intent of this bill. Tax Foundation of Hawaii submitted comments. The Department of Taxation opposed this bill.

Your Committee finds that the increase in the conveyance tax established in this bill will provide essential funding for environmental protection and affordable rental housing, without adversely affecting the vast majority of real estate transactions.

Your Committee has amended this bill by:

(1) Revising the conveyance tax rate to:

(A) 20 cents per $100 of such actual and full consideration paid in the amount of $600,000 or greater but less than $1,000,000; or

(B) 30 cents per $100 of such actual and full consideration paid in the amount of $1,000,000 or greater;

(2) Changing the amount of conveyance tax revenues paid into:

 

(A) The Reserve Fund to 32 percent; and

(B) The Trust Fund to 28 percent;

and

(3) Making technical, nonsubstantive amendments for purposes of style and clarity.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1517, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance, in the form attached hereto as S.B. No. 1517, S.D. 2, H.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,

 

____________________________

BRIAN SCHATZ, Chair