Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2803 entitled:

begs leave to report as follows:

The purpose of this bill is to streamline the administration of conveyance tax exemptions by eliminating the conveyance tax burden for any document or instrument conveying real property from a testamentary trust to any entity owned by the trust for the purpose of distributing ownership interests in the entity to a beneficiary under the trust.

The Hawaii Bankers Association and several concerned individuals testified in support of this bill. The Department of Taxation, Tax Foundation of Hawaii, and Land Use Research Foundation of Hawaii submitted comments.

Your Committee has amended this measure by:

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 H.B. No. 2803, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2803, H.D. 1.