STAND. COM. REP. NO.  864

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1604

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1604 entitled:

"A BILL FOR AN ACT RELATING TO REAL PROPERTY,"

begs leave to report as follows:

     The purpose of this bill is to establish a tax on the value of improvements, surrendered to a lessor by a lessee without compensation to the lessee, at the expiration of a long-term lease on non-residential real property.

     Alexander & Baldwin, Inc., testified in opposition to this bill.  The Tax Foundation of Hawaii, Kamehameha Schools, and Hawaii Association of REALTORS^® provided 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. 1604 and recommends that it pass Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair