STAND. COM. REP. NO. 953

Honolulu, Hawaii

RE:    H.B. No. 1327

       H.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Tourism and International Affairs, to which was referred H.B. No. 1327, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REAL PROPERTY,"

begs leave to report as follows:

     The purpose and intent of this measure is to permit a taxpayer who provides transient accommodations on real property leased from a related entity to claim a general excise tax deduction from the amount of gross proceeds or gross income received from its sublease of the real property.

     Your Committee received testimony in support of this measure from the Hawaii Lodging & Tourism Association; Maui Hotel & Lodging Association; and Host Hotels & Resorts, L.P.  Your Committee received testimony in opposition to this measure from the Department of Taxation.  Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that fairness in taxation is key to good tax policy.  Your Committee further finds that the stakeholders involved with this measure are well-suited to work out potential issues with the language, thus your Committee is inclined to pass this measure to afford those stakeholders that opportunity.

     As affirmed by the record of votes of the members of your Committee on Tourism and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1327, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Tourism and International Affairs,

________________________________

GILBERT KAHELE, Chair