STAND

STAND. COM. REP. 1497

Honolulu, Hawaii

, 2003

RE: S.B. No. 1619

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 Finance, to which was referred S.B. No. 1619, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Stimulate economic development in west Oahu; and

(2) Provide a controlled venue for car racing,

by establishing a motor sports recreation and public safety training and educational facility investment tax credit (Tax Credit) for qualified investments made in the Motor Sports Recreation and Public Safety Training and Educational Facility (Facility) on parcel 9 at Kalaeloa.

The Honolulu Police Department, Ironworkers Union Local 625, Performance Motorsports of Hawaii, LLC, Hawaii Motorsports Center, Sports Car Club of American Hawaii Solo II, Performance Machine Services of Hawaii, and numerous concerned citizens supported this bill. The Department of Business, Economic Development, and Tourism and the Hawaii Farm Bureau Federation opposed this bill. The Department of Taxation, Department of Hawaiian Home Lands, Tax Foundation of Hawaii, and a concerned citizen offered comments.

Your Committee has amended this measure by:

(1) Allowing the Tax Credit to be claimed only upon a declaration by the Governor;

(2) Requiring the Governor to issue a declaration allowing taxpayers to claim the Tax Credit when general fund tax collections at the close of each of two successive fiscal years exceed 7.5% of general fund tax collections for each of the prior two fiscal years;

(3) Requiring the Director of Taxation to notify the Governor of general fund tax collections at the close of every year;

(4) Inserting a repeal date of January 1, 2008, for this measure; and

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

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1619, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1619, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT Y. TAKAMINE, Chair