STAND. COM. REP. NO.  751

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 1598

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 1598 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this bill is to provide fairness to lessees who make capital improvements to leased property when the lease is terminated by imposing a tax on lessors for the value of these improvements upon termination of a lease.

 

     Alexander & Baldwin, Inc., testified in opposition to this bill.  The Department of Taxation, Tax Foundation of Hawaii, and Hawaii Association of REALTORS® submitted comments.

 

     Your Committee has amended this bill by making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1598, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1598, H.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair