CONFERENCE COMMITTEE REP. 118
Honolulu, Hawaii
, 2003
RE: S.B. No. 377
S.D. 1
H.D. 2
C.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 377, S.D. 1, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this measure is to establish a tax credit for qualified costs in the development of facilities for attractions and educational purposes at Ko Olina Resort and Marina.
Your Committee on Conference finds that the tax credit established in this measure will stimulate economic development on the Leeward side of Oahu, including the second city of Kapolei, and enhance Hawaii as a tourism destination. The intended development at Ko Olina Resort and Marina will provide not only economic benefit to the State, but also will create additional jobs, both temporary and permanent, for area residents.
Thus, your Committee on Conference further finds that this measure is justified as being in the public interest and for the public health, safety, and general welfare of the people of Hawaii. Your Committee on Conference strongly believes that the "public purpose" requirement of section 4 of Article VII of the Hawaii State Constitution is satisfied by the economic stimulus provided by the tax credit, which furthers the general welfare.
Your Committee on Conference has amended this measure by:
(1) Adding the Makaha Resort to the tax credit provided to Ko Olina, in view of recent information that Ko Olina is in the process of acquiring Makaha Resort to utilize as a hotel and resort training facility to prepare area resident students for work at Ko Olina or other resort facilities, and amending the purpose section accordingly;
(2) Setting the maximum aggregate tax credit amount at $75,000,000;
(3) Specifying that the tax credit may be claimed for taxable years beginning after December 31, 2004, for qualified costs incurred from June 1, 2003 through May 31, 2009, with a maximum credit per year of $7,500,000;
(4) Clarifying that in the case of a partnership, limited liability company, S corporation, estate, trust, or association of apartment owners, the tax credit allowable is for qualified costs incurred by the entity, to be determined at the entity level;
(5) Requiring that to qualify for the credit, the taxpayer acquire or own the Makaha Resort and lease it for a period of at least six years or sell it to a taxpayer to use as training and educational facilities;
(6) Adding a definition of "Makaha Resort" and specifying its tax map key identification;
(7) Clarifying the definition of "qualified costs" to conform to the amendments;
(8) Deleting references to declaration by the Governor to effectuate the credit;
(9) Clarifying the effective date to specify that the measure applies to qualified costs incurred after May 31, 2003, and deleting the repeal date; and
(10) Making technical changes that have no substantive effect.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 377, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 377, S.D. 1, H.D. 2, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE HOUSE |
ON THE PART OF THE SENATE |
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____________________________ JERRY CHANG, Co-Chair |
____________________________ DONNA MERCADO KIM, Chair |
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____________________________ BRIAN SCHATZ, Co-Chair |
____________________________ BRIAN T. TANIGUCHI, Co-Chair |
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____________________________ DWIGHT Y. TAKAMINE, Co-Chair |
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