STAND. COM. REP. NO.  521

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1180

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Water, Land, & Ocean Resources, to which was referred H.B. No. 1180 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to apply the conveyance tax to transfers of entity ownership when the transfer of entity ownership is essentially equivalent to the sale of an interest in real property.

     The Department of Taxation supported the intent of this measure.  The Tax Foundation of Hawaii and the Hawaii Association of REALTORS offered comments.

     As affirmed by the record of votes of the members of your Committee on Water, Land, & Ocean Resources that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1180 and recommends that it pass Second Reading and be referred to the Committee on Finance.

                                  Respectfully submitted on    behalf of the members of the                Committee on Water, Land, & Ocean Resources,

____________________________

JERRY L. CHANG, Chair