STAND. COM. REP. NO. 965
Honolulu, Hawaii
, 2005
RE: H.B. No. 994
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 994, 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 provide incentives for developing a major recreational and visitor attraction in west Oahu by establishing a Motor Sports Recreation, Public Safety Training, Educational, and Medical Facility (Facility) Investment Tax Credit (Tax Credit) for qualified investments in the Facility at Kalaeloa. Specifically, this bill, among other things:
(1) Limits the total amount of Tax Credits that may be claimed to $50,000,000 in the aggregate for all qualified taxpayers for all taxable years;
(2) Limits the amount of Tax Credits that may be used in any one taxable year to $10,000,000 in the aggregate for all qualified taxpayers;
(3) Further limits the amount of Tax Credits that may be used in any one taxable year to the amount of general excise and transient accommodations tax generated in that year by the construction and operation of the Facility; and
(4) Establishes reporting and certification requirements to claim the Tax Credit.
The Honolulu Police Department, Iron Workers Union 625 Stabilization Fund, Hawaii Building and Construction Trades Council, AFL-CIO, Hawaii Motorsports Center, Hawaii Ford Performance Club, Pacific Karting Club, Race Events Hawaii, LLC, Super Lap Series, LLC, Acquisition Research Corporation, and numerous concerned citizens supported this bill. The Department of Business, Economic Development, and Tourism supported the intent of this measure. The Department of Taxation, The Chamber of Commerce of Hawaii, and At-Cruz Productions opposed this bill. The United States Navy, Hawaii Community Development Authority, and Tax Foundation of Hawaii offered comments.
Your Committee recognizes that the unique provisions contained in this bill require your Committee to adopt a cautious approach in deliberating over this matter.
In light of these concerns, your Committee has amended this bill by:
(1) Changing the annual limit on the Tax Credits from $10,000,000 to $1 and the total, aggregate limit on the Tax Credits from $50,000,000 to $1 to promote further discussion;
(2) Changing the effective date to July 1, 2099, to promote further discussion; and
(3) Making technical, nonsubstantive amendments for style, clarity, and consistency.
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. 994, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 994, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT TAKAMINE, Chair |