STAND. COM. REP. NO. 2600

Honolulu, Hawaii

RE:    S.B. No. 2592

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2592, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"

begs leave to report as follows:

     The purpose of this measure is to allow a general excise tax exemption to qualified persons or firms who receive rental income on newly constructed or moderately or substantially rehabilitated housing projects.

     Your Committee finds that this measure will provide a financial incentive to developers and owners of rental units for low- and moderate-income renters and for homeowners residing in new or substantially rehabilitated homes.

     Upon further consideration, your Committee has made technical nonsubstantive amendments to:

(1)  Add the definition of "qualified person or firm" in section 237-29, Hawaii Revised Statutes, instead of section 237-1, Hawaii Revised Statutes, because the term appears only in section 237-29, Hawaii Revised Statutes; and

(2)  Restructure the amendments to section 201H‑36(a)(4), Hawaii Revised Statutes, to provide better clarity and cohesion.

     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. 2592, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2592, S.D. 2.

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

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DONNA MERCADO KIM, Chair