STAND. COM. REP. 228

Honolulu, Hawaii

, 2003

RE: H.B. No. 1615

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1615 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this bill is to exempt an association of owners of a time share plan from general excise tax payments.

Testimony in support of this measure was received from the American Residential Development Association and from SVO Pacific, Inc. The Department of Taxation commented on the bill.

Your Committee finds that an association of apartment owners (AOAO) of a condominium property regime and nonprofit homeowners or community associations are exempt from general excise payments. In addition, your Committee finds that most time share plans in this State are established in condominiums. However, time share associations, unlike their AOAO counterparts, are subject to the four percent general excise tax on condominium assessments. Your Committee believes that extending the excise tax exemption to time share associations would treat them fairly, and in the same manner as other associations.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1615 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

 

____________________________

KENNETH T. HIRAKI, Chair