STAND. COM. REP. NO.  520-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2885

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. 2885 entitled:

"A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"

begs leave to report as follows:

     The purpose of this bill is to ensure greater fiscal flexibility by temporarily:

     (1)  Suspending the portion of the conveyance tax that is deposited into the Land Conservation Fund and Rental Housing Trust Fund; and

     (2)  Reducing the amount of the conveyance tax that is deposited into the Natural Area Reserve Fund.

     The Hawaii Housing Finance and Development Corporation; Office of Hawaiian Affairs; Department of Water Supply of Maui County; Department of Community Services of the City and County of Honolulu; Sierra Club-Hawaii Chapter; Maui Invasive Species Committee; The Nature Conservancy; Oahu Land Trust; Conservation Council for Hawaii; Catholic Charities Hawaii; The Trust for Public Land; Hawaii Family Forum; Hawaii Catholic Conference; Maui Coastal Land Trust; Hawaii Habitat for Humanity Association; EAH Housing; Coordinating Group on Alien Pest Species; Hawaii Conservation Alliance Foundation; Dole Food Company Hawaii; KAHEA; Partners In Care; Maui Land and Pineapple Co., Inc; Hawaii Island Community Development Corporation; The Outdoor Circle; Hawaiian Trail and Mountain Club; Pacific Housing Advisors; Weinberg Village Waimanalo; Kupu; MauiGrown Coffee, Inc.; and numerous concerned individuals opposed this bill.  The Department of Land and Natural Resources, Tax Foundation of Hawaii, and a concerned individual offered 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. 2885 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair