STAND. COM. REP. NO.658

Honolulu, Hawaii

, 2003

RE: S.B. No. 1533

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1533, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to provide a general excise tax exemption for amounts received in reimbursement of sums paid for common expenses by the manager or board of directors of an association of owners for a time share plan under chapter 514E, Hawaii Revised Statutes.

Your Committee notes that similar exemptions already exist for associations of apartment owners for condominiums under chapter 514A and nonprofit associations incorporated under chapter 514D. This provision would provide parity for time share plans. Your Committee finds that reimbursement for common expenses in this situation should not be taxable as no specific good or service is being purchased.

Your Committee has amended this bill by changing the effective date to July 1, 2005 for the purposes of further discussion.

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. 1533, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1533, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair