STAND. COM. REP. NO. 2226

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2592

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Education and Housing, to which was referred S.B. No. 2592 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to allow a general excise tax exemption to qualified persons or firms who receive rental income on newly constructed or moderately or substantially rehabilitated housing projects from households that meet certain residency and annual income criteria.

 

     Testimony in support of this measure was submitted by one private organization and one individual.  Testimony in opposition of this measure was submitted by one state agency and two private organizations.  Comments on this measure were submitted by one state agency.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that during the current economic recession that is being experienced by the State, this measure would provide a financial incentive to developers and owners of rental units for low and moderate income renters and for homeowners residing in new or substantially rehabilitated homes.  Your Committee also finds that this measure will help to clear up some of the ambiguity in how general excise tax exemptions apply to developers and renters of affordable housing under chapter 201H, Hawaii Revised Statutes.

 

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on this measure.

 

     As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2592, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2592, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

NORMAN SAKAMOTO, Chair