STAND. COM. REP. NO. 3312

 

Honolulu, Hawaii

                   

 

RE:     S.B. No. 3138

        S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 3138, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO HOUSING,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to facilitate the development of affordable housing.

 

     Specifically, this measure expands the scope of costs derived from the development of affordable rental housing certified by the Hawaii Housing Finance and Development Corporation that are eligible for exemption from the general excise tax.

 

     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation; Hawaii Regional Council of Carpenters; Pacific Resource Partnership; Schatz Collaborative, LLC; Kauai Housing Development Corporation; and seven individuals.

 

     Your Committee received written comments on this measure from the Department of Taxation.

 

     Your Committee finds that current state law exempts from general excise taxes the contracting costs for projects certified by the Hawaii Housing Finance and Development Corporation.  Your Committee believes that amending the exemption to cover other development costs, including financing, sales, and leasing costs, will encourage the development of additional affordable housing.

 

     Your Committee has amended this measure by changing the 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. 3138, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3138, S.D. 2.

 

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

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair