STAND. COM. REP. NO.  241

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 283

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred H.B. No. 283 entitled:

"A BILL FOR AN ACT RELATING TO A GENERAL EXCISE TAX EXEMPTION FOR MIXED-USE HOUSING PROJECTS,"

begs leave to report as follows:

The purpose of this measure is to promote the development of affordable housing by authorizing the exemption of any qualified person or firm involved in the development of affordable housing in a mixed-use project on certain state or county lands from general excise taxes.

The Hawaii Primary Care Association testified in support of this measure.  The Hawaii Housing Finance and Development Corporation and Hawaii Association of REALTORS supported the intent of this bill.  The Department of Taxation and Tax Foundation of Hawaii provided comments.

     Your Committee acknowledges that this measure warrants further discussion and collaboration, but notes that if it is ultimately passed, it should take effect no earlier than July 1, 2017.  Your Committee respectfully requests that this date be given due consideration as this measure continues through the legislative process.

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to promote further discussion.  

     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. 283, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 283, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

MARK J. HASHEM, Chair