CONFERENCE COMMITTEE REP. NO. 2-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 508

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 508, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to change the percentage deducted and withheld from the disposition of Hawaii real property by nonresidents from five percent of the amount realized to an unspecified percentage.

Your Committee on Conference finds that section 235-68, Hawaii Revised Statutes, requires a withholding of income tax on the disposition of real property held by nonresidents. This withholding is sometimes referred to as "HARPTA", an acronym for Hawaii Real Property Tax Act. Your Committee on Conference further finds that this section was enacted to provide a means for the State to collect capital gains taxes from absentee property owners.

Your Committee on Conference has amended this measure by changing the withholding rate from an unspecified percentage to 7.25 percent.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 508, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 508, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SYLVIA LUKE Chair	____________________________ DONOVAN M. DELA CRUZ Chair
	____________________________ GILBERT S.C. KEITH-AGARAN Co-Chair