STAND. COM. REP. NO.2160
RE: S.B. No. 2383
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Economic Development and Technology, to which was referred S.B. No. 2383 entitled:
"A BILL FOR AN ACT RELATING TO TAXATION TO STIMULATE THE ECONOMY,"
begs leave to report as follows:
The purpose of this measure is to expand the definition of "qualified hotel facility" to include property on which commercial or recreational use is permitted and offsite improvements necessary to service destination resort areas.
Your Committee received testimony in favor of this measure from the Hawaii Tourism Authority, Land Use Research Foundation of Hawaii, Hawaii Hotel Association, Visitor Industry Coalition, Hawaii Resort Developers Conference, Waikiki Improvement Association, Ko Olina Resort and Marina, Hawaii Activities and Tours Association, and Hawaii Operating Engineers Industry Stabilization Fund. Your Committee received testimony opposing this measure from the Department of Taxation, and comments from Tax Foundation of Hawaii.
Your Committee finds that a tax credit to boost Hawaii's tourism and construction industries would be beneficial to enhance economic activity and the overall appearance and offerings of Hawaii's resort areas on a competitive level.
Your Committee has amended this measure by including a commercial construction and remodeling tax credit to further enhance the State's economy.
As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2383, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2383, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,
ROD TAM, Chair