Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1848, H.D. 1, S.D. 1, entitled:

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 bill is to authorize the counties to allow a taxpayer subject to the real property tax law to claim an exceptional tree tax credit against the taxpayer's real property tax liability.

Your Committee has amended this measure by deleting its contents and replacing it with a modified version of the House Draft 1.

As amended, this measure allows a taxpayer subject to the income tax law to claim an exceptional tree deduction against the taxpayer's gross income. Specifically, this measure allows the taxpayer a deduction of up to $3,000 per exceptional tree for expenditures made during the taxable year to maintain that exceptional tree. However, this measure disallows the deduction from being taken more than once every three consecutive taxable years. Furthermore, this measure limits the amount of deduction to the amount of expenditures deemed reasonably necessary by a certified arborist.

Your Committee finds that an exceptional tree is a statutory term for a tree that has been designated as an exceptional tree by the county arborist advisory committee. Specifically, an exceptional tree is a tree with historic or cultural value, or is otherwise worthy of preservation. Your Committee finds that this measure will provide real property owners with a tax incentive to maintain exceptional trees on their property for the benefit of both the owners and the community at large.

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 H.B. No. 1848, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1848, H.D. 1, S.D. 1, C.D. 1.