STAND. COM. REP. NO. 1383-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2415

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 2415, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"

begs leave to report as follows:

The purpose of this measure is to increase state revenues by increasing the conveyance tax rates for residential investment properties with a value of at least $2,000,000.

Hawaii Association of REALTORS, Land Use Research Foundation of Hawaii, BIA-Hawaii, and Kohala Coast Resort Association opposed this measure. The Department of Taxation, Hawaii Housing Finance and Development Corporation, Catholic Charities Hawai‘i, IMUAlliance, Hawaii Habitat for Humanity Association, and Tax Foundation of Hawaii offered comments on this measure.

Your Committee has amended this measure by:

(1) Inserting language that exempts certain affordable housing qualified by the Hawaii Housing Finance and Development Corporation from the conveyance tax;

(2) Changing the effective date to January 1, 2050, to encourage further discussion; and

(3) 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 S.B. No. 2415, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2415, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

TOM BROWER, Chair