STAND. COM. REP. NO.  1074

 

Honolulu, Hawaii

                , 2017

 

RE:   H.B. No. 486

      H.D. 2

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 486, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE MORTGAGE INTEREST DEDUCTION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to eliminate the mortgage interest deduction for second homes under Hawaii income tax law and transfer an equivalent amount into the Rental Housing Revolving Fund.

 

     The Hawaii Association of REALTORS opposed this measure.  The Department of Budget and Finance, Department of Taxation, Hawaii Housing Finance and Development Corporation, Tax Foundation of Hawaii, and BIA-Hawaii provided comments.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the effective date to July 1, 2030, to encourage further discussion; and

 

     (2)  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. 486, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 486, H.D. 2.

 

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

 

 

 

 

____________________________

SYLVIA LUKE, Chair