STAND. COM. REP. NO.  640-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 1921

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1921, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A CONTROLLING INTEREST TRANSFER TAX,"

begs leave to report as follows:

     The purpose of this bill is to capture taxes on certain conveyances of real property that currently escape the conveyance tax.  Specifically, this bill will establish a tax on transfers of real property that occur within the transfer of a controlling interest in a legal entity that owns the real property.

     The Chamber of Commerce of 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 consistency, clarity, 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. 1921, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1921, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair