STAND. COM. REP. NO. 2849

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2416

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 2416, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to makes certain statutory amendments relating to the conveyance tax.

 

     More specifically, the measure:

 

     (1)  Increases the conveyance tax rates for certain high-value properties; and

 

     (2)  Repeals the statutory monetary cap on the amount of conveyance tax moneys paid into the rental housing revolving fund for the financing of affordable rental housing developments.

 

     Your Committee received written comments in support of this measure from the Office of Hawaiian Affairs, Catholic Charities Hawaii, Hawaii Appleseed Center for Law & Economic Justice, IMUAlliance, and Partners in Care.

 

     Your Committee received written comments in opposition to this measure from the Hawaii Association of REALTORS and Land Use Research Foundation of Hawaii.

 

     Your Committee received written comments on this measure from the Department of Taxation, Hawaii Housing Finance Development Corporation, General Contractors Association of Hawaii, and Tax Foundation of Hawaii.

 

     Your Committee finds that this measure facilitates the availability of additional moneys for affordable rental housing finance and development in the State.

 

     Your Committee has amended this measure by:

 

     (1)  Inserting language that exempts affordable housing from the conveyance tax pursuant to rules to be adopted by the Director of Taxation; and

 

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2416, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2416, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair