Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred H.B. No. 2528 entitled:

begs leave to report as follows:

The purpose of this bill is to increase the size of the State's conservation lands. This bill establishes a conservation land tax credit that would apply to any landowner who:

(1) Donates conservation land to the State; or

The tax credit may only be claimed for taxable years following two successive fiscal years in which tax collections for each fiscal year exceed the previous fiscal year's tax collections by an unspecified percentage. The amount of the tax credit is also unspecified.

The Hawaii Audubon Society, Sierra Club, Hawaii Chapter, and four individuals testified in support of this bill. The Department of Land and Natural Resources supported the concept but deferred to the Department of Taxation which opposed this measure. The Tax Foundation of Hawaii offered comments.

For purposes of continued discussion, your Committee has amended this bill by:

In determining whether to accept donated property, BLNR should consider a wide range of factors that may be in the State's interests.

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2528, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2528, H.D. 1, and be referred to the Committee on Finance.