STAND. COM. REP. NO. 835

Honolulu, Hawaii

RE: S.B. No. 395

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 395 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to repeal the existing statutory exemption from the imposition of the conveyance tax on realty leases of less than five years.

Your Committee received testimony in opposition to this measure from the Hawaii Association of Realtors.

Your Committee received comments on this measure from the Department of Taxation and the Tax Foundation of Hawaii.

Your Committee finds that this measure will provide enhanced revenues to the beneficiaries of the conveyance tax.

Your Committee has amended this measure by:

(1) Exempting leases of residential property of one year or less from the conveyance tax; and

(2) Changing its effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 395, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 395, 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