STAND. COM. REP. NO. 704

Honolulu, Hawaii

RE:    S.B. No. 1962

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1962, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to provide an income tax deduction to residential unit owner occupants for the installation of an automatic fire sprinkler system in an older condominium project between July 1, 2007, and June 30, 2012.

     This measure limits the tax deduction to owner occupants for new installation of an automatic fire sprinkler system that serve an entire residential or mixed use condominium that was constructed before December 31, 1975.

     Your Committee received written comments in support of this measure from the Department of Labor and Industrial Relations.  Written comments in opposition was received from the Department of Taxation.

     Your Committee believes that fire safety is an issue of major public concern, especially in older multi-family dwellings, such as condominiums.

     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. 1962, S.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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ROSALYN H. BAKER, Chair