Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection and Housing and Tourism, to which was referred S.B. No. 1629 entitled:

beg leave to report as follows:

The purpose of this measure is to provide an excise tax exemption for amounts received by:

Testimony in support of this measure was received from Outrigger Hotels. Comments were received from the Department of Taxation and Tax Foundation of Hawaii.

Existing law provides for general excise tax exemptions for amounts received by hotel operators from the hotel owner as reimbursements of sums paid for common expenses by the manager or board of directors of an association of apartment owners of a condominium property regime or a nonprofit homeowners or community association.

This measure extends existing general excise tax exemptions to include expenses paid by submanagers and suboperators and expenses in timeshare projects.

Your Committees find that this measure extends equitable treatment to taxpayers in similar situations and is justifiable.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1629 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.