STAND. COM. REP. 914

Honolulu, Hawaii

, 2003

RE: S.B. No. 1619

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred S.B. No. 1619, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this bill is to establish a Motor Sports Recreation and Public Safety Training and Educational Facility Investment Tax Credit (Tax Credit) for qualified investments made by a taxpayer in the Motor Sports Recreation and Public Safety Training and Educational Facility (Facility) on parcel 9 at Kalaeloa (Facility).

Hawaii Motorsports Center and four concerned citizens supported this bill. The Hawaii Farm Bureau Federation opposed this measure. The Department of Taxation (DOTAX) and Tax Foundation of Hawaii offered comments.

Your Committee recognizes the value of the Facility in providing an economic stimulus for west Oahu and in promoting public safety by providing a safe venue for car racing. Your Committee notes, however, that additional recordkeeping and certification requirements would improve the administration of this Tax Credit.

Therefore, your Committee has amended this measure by:

(1) Requiring the Director of DOTAX to prepare any forms necessary to claim the Tax Credit and allowing the Director of DOTAX to require taxpayers to furnish information to ascertain the validity of the claims for the Tax Credit;

(2) Requiring that qualified taxpayers shall submit a written certified statement identifying certain data relating to the Tax Credit to the Director of the Department of Business, Economic Development, and Tourism (DBEDT), instead of the Director of DOTAX;

(3) Requiring DBEDT to maintain records of taxpayers, verify all qualified investments, and issue a certificate to each taxpayer certifying:

(A) The amount of the qualified investments;

(B) The amount of the Tax Credit allowed to each taxpayer for the taxable year; and

(C) The tax liability under this chapter and chapter 237 against which the Tax Credit is claimed;

(4) Requiring the taxpayer to file the certificate with the

taxpayer's tax return; and

(5) Requiring DBEDT to certify the limit on the amount of the Tax Credit established in this bill.

In addition, your Committee has further amended this bill by:

(1) Establishing that this bill, upon its approval, shall apply to qualified investments incurred after December 31, 2005, to promote further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1619, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1619, S.D. 2, H.D. 1, and be referred to the Committees on Public Safety and Military Affairs and Tourism and Culture.

Respectfully submitted on behalf of the members of the Committee on Water, Land Use, and Hawaiian Affairs,

 

____________________________

THOMAS WATERS, Acting Chair