STAND. COM. REP. NO.  130

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 906

      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. 906 entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX EXEMPTIONS FOR CERTIFIED OR APPROVED HOUSING PROJECTS,"

begs leave to report as follows:

The purpose of this measure is to ensure affordable rental housing projects certified by the Hawaii Housing Finance and Development Corporation (Corporation) for exemptions from general excise taxes remain affordable for a certain minimum amount of time by requiring those projects seeking certification to enter into a regulatory agreement with the Corporation.

The Department of Business, Economic Development and Tourism; Hawaii Housing Finance and Development Corporation; and Hawaii Primary Care Association testified in support of this measure.  The Department of Taxation and Tax Foundation of Hawaii provided comments.  

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2050, to promote further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 906, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 906, 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