STAND. COM. REP. NO. 3064
Honolulu, Hawaii
RE: H.B. No. 1958
H.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Eighth State Legislature
Regular Session of 2016
State of Hawaii
Sir:
Your Committee on Housing, to which was referred H.B. No. 1958, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO A GENERAL EXCISE TAX EXEMPTION FOR LOW INCOME RENTAL SUBSIDIES,"
begs leave to report as follows:
The purpose and intent of this measure is to exempt rental subsidy payments for Section 8 and Housing First programs from the state general excise tax.
Your Committee received testimony in support of this measure from the Coordinator on Homelessness under the Office of the Governor, Department of Human Services, Hawaii Public Housing Authority, Hawai‘i Association of REALTORS, and one individual. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your Committee finds that housing programs, such as the Section 8 and Housing First programs, that serve the most vulnerable populations are challenged to find landlords and property managers willing to rent units to those individuals and families participating in the programs. For example, it may often take a Section 8 program participant several months to find a landlord willing to accept a voucher, leaving the family without housing and stability. This measure offers a creative way to incentivize landlords to rent to Section 8 program participants and homeless individuals and families by providing an exemption of rental subsidy payments from the state general excise tax.
As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1958, H.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Housing,
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________________________________ BREENE HARIMOTO, Chair |
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