REPORT TITLE:
Hawaiian Home Lands


DESCRIPTION:
Exempts from the income and general excise tax law amounts
received for the construction of homes on Hawaiian home lands.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            731         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HAWAIIAN HOME LANDS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "235-     Exclusion of income from construction on Hawaiian
 
 5 home lands.  (a)  In addition to the amounts excluded under
 
 6 section 235-7, any income received by a licensed contractor for
 
 7 the construction of affordable housing on Hawaiian home lands
 
 8 shall be excluded from gross income provided that:
 
 9      (1)  The unit is started and completed within a three-month
 
10           time period;
 
11      (2)  The sale price of the completed unit is less than
 
12           $75,000; and
 
13      (3)  The department of Hawaiian home lands certifies to the
 
14           director that the income is eligible for the exclusion.
 
15      (b)  The department of Hawaiian home lands shall make annual
 
16 reports to the department listing the number and type of units
 
17 certified, the number actually built, the value of each unit, and
 
18 the contractors who built them.
 
19      (c)  The director may adopt rules in accordance with chapter
 

 
Page 2                                         731         
                                     H.B. NO.           
                                                        
                                                        

 
 1 91 to administer this section."
 
 2      SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended
 
 3 by adding a new section to read as follows:
 
 4      "237-     Hawaiian home lands exemption.  (a)  There shall
 
 5 be exempted from, and excluded from the measure of, the taxes
 
 6 imposed by this chapter all of the value of gross proceeds
 
 7 arising from the construction of affordable housing on Hawaiian
 
 8 home lands provided that:
 
 9      (1)  Each unit is started and completed within a three-month
 
10           time period;
 
11      (2)  The sale price of the completed unit is less than
 
12           $75,000; and
 
13      (3)  The department of Hawaiian home lands certifies to the
 
14           director that the income is eligible for the exclusion.
 
15      (b)  The department of Hawaiian home lands shall make annual
 
16 reports to the department listing the number of and type of units
 
17 certified, the number actually built, the value of each unit, and
 
18 the contractors who built them.
 
19      (c)  The director may adopt rules in accordance with chapter
 
20 91 to administer this section."
 
21      SECTION 3.  New statutory material is underscored.
 
22      SECTION 4.  This Act shall take effect on July 1, 1999;
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 provided that section 2 shall apply to taxable years beginning
 
 2 after December 31, 1999.
 
 3 
 
 4                              INTRODUCED BY:______________________