STAND. COM. REP. NO.  357

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1408

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. 1408 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 establish a controlling interest transfer tax imposed at the rate set under the conveyance tax, to be administered by the Director of Taxation on any transfer of interest of more than 50 percent in an entity holding real property in the State.

     The Department of Taxation supported the intent of this measure.  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. 1408 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