STAND. COM. REP. NO.  766-10

 

Honolulu, Hawaii

                , 2010

 

RE:   S.B. No. 2575

      S.D. 2

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committee on Housing, to which was referred S.B. No. 2575, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO HOUSING,"

 

begs leave to report as follows:

 

     The purpose of this bill is to help reduce real estate speculation by imposing an anti-speculation capital gains tax on the net capital gains realized by the sale of real property held for 24 months or less, with certain exceptions.

 

     Community Alliance Partners testified in support of this measure.  The Department of Taxation, Hawaii Association of REALTORS, and Alexander and Baldwin, Inc., opposed this measure.  The Tax Foundation of Hawaii provided comments.

 

     Your Committee has amended this bill by:

 

     (1)  Changing the distribution of realized tax revenues from equal amounts to be deposited in the Rental Housing Trust Fund and the general fund to:

 

          (A)  75 percent to be deposited into the Rental Housing Trust Fund; and

 

          (B)  25 percent to be deposited into the general fund;

 

     and

 

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2575, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2575, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Housing,

 

 

 

 

____________________________

RIDA CABANILLA, Chair