STAND. COM. REP. NO. 55

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 536

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committee on Tourism and International Affairs, to which was referred S.B. No. 536 entitled:

 

"A BILL FOR AN ACT RELATING TO TOURISM STIMULUS INITIATIVES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to provide an income tax credit for hotel construction and renovation for taxable years beginning after December 31, 2014, and ending on December 31, 2019.

 

     Your Committee received testimony in support of this measure from the Hawaii Tourism Authority, Hawaii Lodging and Tourism Association, Wyndham Vacation Ownership, and Outrigger Hotels Hawaii.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

 

     Your Committee finds that Hawaii's travel and tourism industry must continue to refresh its product offering to support and attract new and repeat travelers, compete with other global destinations, and distinguish Hawaii as a unique travel and tourist destination; Hawaii cannot continue to rely on aging hotel and resort infrastructure and hope for the best.  Traditional financing has failed to generate new construction and renovation work, and jobs are lacking.  Therefore, your Committee finds that a hotel construction and renovation tax credit will provide an economic stimulus to benefit Hawaii's tourism industry.

 

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Tourism and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 536, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 536, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Tourism and International Affairs,

 

 

 

____________________________

GILBERT KAHELE, Chair