STAND. COM. REP. NO. 2813

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2783

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committees on Commerce and Consumer Protection and Tourism, to which was referred H.B. No. 2783, H.D. 2, entitled:

 

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

 

beg leave to report as follows:

 

     The purpose of this measure is to statutorily extend until June 30, 2015, the $400,000 aggregate cap on general excise tax exemptions on amounts received by the operator of a hotel from a timeshare association and on amounts received by the suboperator of a hotel from the owner of the hotel, a time share association, or the operator of the hotel.

 

     This measure also provides that the general excise tax exemption for amounts received by a submanager of an association of apartment owners of a condominium property regime or nonprofit homeowners or community association as reimbursement for payment of common expenses shall be effective retroactive to July 1, 2006.

 

     Your Committees received testimony in support of this measure from Wyndham Worldwide.  Testimony in support of the intent of this measure with amendments was submitted by Outrigger Enterprises Group, Starwood Vacation Ownership, Marriott Vacation Club International, the American Resort Development Association, and the Hawaii Association of REALTORS.  Testimony commenting on this measure was received from the Tax Foundation of Hawaii.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

 

     Your Committees find that the capped exemption of the general excise tax has helped to make Hawaii's tourism market more competitive nationally by ensuring that the costs of maintaining and developing timeshares in Hawaii stay reasonable and by leveling the playing field with regards to operators and suboperators of hotels and timeshares in the local market. 

 

     Your Committees have amended this measure by replacing its contents with a similar measure, S.B. No. 2643, S.D. 1.  As amended, this measure is more concise, makes the general excise tax exemptions permanent, and does not include provisions to make the submanager's exemption retroactive.

 

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2783, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2783, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Tourism,

 

____________________________

CLARENCE K. NISHIHARA, Chair

 

____________________________

ROSALYN H. BAKER, Chair