STAND. COM. REP. NO.  687

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 Finance, to which was referred H.B. No. 283, H.D. 1, 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:

(1)  Authorizing the Hawaii Housing Finance and Development Corporation (HHFDC) to develop, on behalf of the State or with any qualified person or firm, a mixed-used project within a location-efficient area; and

(2)  Authorizing the exemption of any qualified person or firm involved in the development of affordable housing in a newly constructed, or moderately or substantially rehabilitated, mixed-use project within a location-efficient area from general excise taxes.  

The Building Industry Association of Hawaii supported this measure.  The Department of Taxation, HHFDC, Tax Foundation of Hawaii, and Hawaii Association of REALTORS commented on this measure.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 283, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair