STAND. COM. REP. NO.  1019

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 252

      H.D. 1

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. 252, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONVEYANCE TAXES FOR SPECULATIVE SALES,"

begs leave to report as follows:

     The purpose of this bill is to stabilize property values and taxes in Hawaii by discouraging the practice of real estate speculation through an increase in the conveyance tax rates for sales of condominiums or single-family residences where the purchaser is ineligible for a county homeowner's property tax exemption.

     The Trust for Public Land and Nature Conservancy of Hawaii supported this bill.  The Department of Land and Natural Resources supported the intent of this measure.  Hawaii Association of Realtors, National Federation of Independent Business Hawaii, and Wyndham Vacation Ownership, Inc. opposed this bill.  The Department of Taxation and Tax Foundation of Hawaii submitted comments.

     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. 252, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair