STAND. COM. REP. NO. 686

Honolulu, Hawaii

, 2005

RE: S.B. No. 1870

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1870 entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX,"

begs leave to report as follows:

The purpose of this measure is to impose a general excise tax on owner-builders on the value of the building of their own personal residences.

The tax is to be imposed in addition to the tax imposed under section 237-13, Hawaii Revised Statutes, which imposes the general excise tax on various classes of taxpayers. The rate of the tax is unspecified but is to be levied on the value of the construction, renovation, or alteration of the owner-builder's personal residence that is the subject of a building permit. The bill further provides that the value of work performed by a licensed subcontractor is to be deducted from the value of work to be assessed the tax. Finally, the bill requires the counties to collect this tax, as a condition to issuing the permit, and to remit the moneys to the Department of Taxation.

Your Committee has amended this bill by making a technical amendment and by changing the effective date to September 1, 2099 to facilitate further discussion on the merits of the bill.

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. 1870, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1870, 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,

____________________________

BRIAN T. TANIGUCHI, Chair