STAND. COM. REP. NO. 960
Honolulu, Hawaii
, 2005
RE: H.B. No. 998
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. 998, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOTEL CONSTRUCTION AND REMODELING TAX CREDIT,"
begs leave to report as follows:
The purpose of this bill is to continue and expand incentives to develop our visitor industry infrastructure by:
(1) Raising the Tax Credit from four percent to eight percent of construction or renovation costs incurred for each qualified hotel facility for costs incurred before July 1, 2009;
(2) Extending the four percent Tax Credit for construction
or renovation costs incurred for each qualified hotel facility for costs incurred from July 1, 2009, through June 30, 2012;
(3) Repealing the Tax Credit on July 1, 2012;
(4) Removing time share facilities and projects, and condominiums from the definition of "qualified hotel facility";
(5) Including recapture provisions in the event a qualified hotel facility is converted, or is being converted, to a time share facility or condominium; and
(6) Repealing the provision requiring taxpayers to be in
compliance with all applicable federal, state, and county statutes, rules, and regulations to qualify for the Tax Credit.
The Hawaii Tourism Authority, Waikiki Improvement Association, Hawaii Resort Developers Conference, Outrigger Hotels, and Subcontractors Association of Hawaii supported this bill. The Department of Business, Economic Development, and Tourism supported the intent of this measure. The Department of Taxation, American Resort Development Association's Hawaii Chapter, Starwood Hotels & Resorts Worldwide Inc., and Cendant Corporation/Fairfield Resorts opposed this measure. The Tax Foundation of Hawaii and Hawaii Hotel and Lodging Association provided comments on this measure.
Your Committee has amended this bill by:
(1) Blanking out the Tax Credit percentages;
(2) Changing the effective date to July 1, 2099, to encourage further discussion on this measure; and
(3) Making technical, nonsubstantial amendments for clarity,
consistency, and style.
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. 998, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 998, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT TAKAMINE, Chair |