STAND. COM. REP. NO. 2658

Honolulu, Hawaii

RE: S.B. No. 2415

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2415 entitled:

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

begs leave to report as follows:

The purpose and intent 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.

Your Committee received testimony in support of this measure from IMUAlliance.

Your Committee received testimony in opposition to this measure from the Land Use Research Foundation of Hawaii and Hawaii Association of REALTORS.

Your Committee received comments on this measure from the Department of Taxation, Hawaii Housing Finance and Development Corporation, Tax Foundation of Hawaii, and General Contractors Association of Hawaii.

Your Committee finds that, according to projections by the Department of Taxation, this measure will generate an additional $29,800,000 in revenue in fiscal year 2019 and $32,500,000 in revenue for fiscal year 2020 and in subsequent years.

Your Committee has amended this measure by making technical nonsubstantive changes for consistency and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2415, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2415, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair