STAND. COM. REP. NO.  802

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 Finance, to which was referred H.B. No. 906, H.D. 1, 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 projects by the Hawaii Housing Finance and Development Corporation remain affordable for a certain minimum period of time as a condition to establishing eligibility for exemptions from general excise taxes.

Specifically, this measure requires those projects seeking certification for the exemption to enter into a regulatory agreement with the Corporation which ensures compliance with applicable exemption eligibility requirements for the applicable minimum period of time set in statute.

The Department of Business, Economic Development, and Tourism and Hawaii Housing Finance and Development Corporation supported this measure.  The Department of Taxation and the Tax Foundation of Hawaii 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. 906, 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