STAND. COM. REP. NO.  900

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1002

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1002, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INCOME TAX,"

begs leave to report as follows:

     The purpose of this bill is to reduce speculation and increase affordable housing by establishing an anti-speculation capital gains tax, to be deposited into the Rental Housing Trust Fund.

     The Hawaii Association of REALTORS and National Federation of Independent Businesses in Hawaii opposed this bill.  The Department of Taxation and Tax Foundation of Hawaii provided comments.

     Your Committee has amended this bill by making technical, nonsubstantive 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. 1002, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1002, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair