STAND. COM. REP. NO. 2903
Honolulu, Hawaii
RE: S.B. No. 2076
S.D. 2
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2006
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 2076, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO LEASEHOLD CONVERSION,"
begs leave to report as follows:
The purpose of this measure is to encourage the conversion of leasehold residential properties to fee simple.
This measure will exclude from gross income for state tax purposes, for the next five tax years beginning after December 31, 2006, one hundred per cent of the gain realized by a fee simple owner from the sale of a leased fee interest to:
(1) The lessee of a residential house lot or multi-family residential leasehold unit; or
(2) The association of apartment owners or the residential cooperative corporation of the multi-family residential property.
Your Committee has amended this measure by deleting its contents and inserting in its place the contents of H.B. No. 1554, C.D. 1, Regular Session of 2005. This amendment will:
(1) Exclude from gross income for state tax purposes fifty per cent of the income derived by a fee owner from the sale of a leased fee interest in a residential leasehold house lot or multi-family residential leasehold unit to the lessee;
(2) Limit the exclusion to not exceed $75,000 in the aggregate for all taxpayers in the State in any year; and
(3) Limit this exclusion to the tax year beginning after December 31, 2006, and ending prior to January 1, 2008.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2076, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2076, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ BRIAN T. TANIGUCHI, Chair |
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