STAND. COM. REP. NO.  1751-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3165

      S.D. 2

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 3165, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to encourage the development of affordable housing or a community health care facility within a mixed-used transit-oriented joint development project by exempting these projects from the general excise tax.

     The Hawaii Alliance for Community-Based Economic Development, Hawaii Association of Realtors^®, Hawaii Council of Associations of Apartment Owners, Transit-Oriented Community-Based Development Project, and Hawaii Independent Condominium & Cooperative Owners testified in support of this bill.  The Department of Taxation opposed this measure.  The Hawaii Housing Finance and Development Corporation, Department of Planning and Permitting of the City and County of Honolulu, and Tax Foundation of Hawaii offered comments.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2020, to encourage further discussion; and

     (2)  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 S.B. No. 3165, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3165, S.D. 2, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair