STAND. COM. REP. NO. 2574

Honolulu, Hawaii

RE:    S.B. No. 2595

       S.D. 1

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. 2595, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to require that the gross annual income of households in a housing project developed by a qualified person or firm be calculated according to the United States Department of Housing and Urban Development's method of calculation for determining eligibility for the Federal Housing Choice Voucher (section 8) program, in order for the person or firm to be considered to receive a general excise tax exemption.

     Your Committee received written comments in opposition to this measure from Ford Island Housing and the Chamber of Commerce of Hawaii.  Written comments may be reviewed on the Legislature's website.

     This measure will provide objective criteria for determining tax exemption status by basing qualification for a general excise tax exemption on gross annual income and occupancy percentages of an affordable housing project.  Your Committee finds that this measure establishes a fair and just connection between gross annual income and qualification for a general excise tax exemption for affordable housing projects.

     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. 2595, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DONNA MERCADO KIM, Chair