STAND. COM. REP. 127

Honolulu, Hawaii

, 2003

RE: H.B. No. 1279

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Tourism and Culture, to which was referred H.B. No. 1279 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this bill is to establish a nonrefundable tax credit for qualified costs incurred in the development of facilities at Ko Olina Resort and Marina. The tax credit, among other things:

(1) Applies to qualified costs incurred during a six-year period beginning after December 31, 2003, and before January 1, 2010;

(2) Amounts to a maximum credit of $7,500,000 in the aggregate for all qualified taxpayers in any one year; and

(3) Amounts to a maximum credit of $75,000,000 in the aggregate for all qualified taxpayers for all six years.

Testimony in support of this bill was submitted by the Department of Business, Economic Development, and Tourism, Department of Taxation (DOTAX), Hawaii Tourism Authority, Outrigger Hotels, Ko Olina Community Association, Ko Olina Resort and Marina, The Chamber of Commerce of Hawaii, The Estate of James Campbell, Ocean Sports Productions, LLC, and three concerned citizens. The Pacific Resource Partnership supported the intent of this measure. The Tax Foundation of Hawaii offered comments.

Your Committee notes that this tax credit provides enormous incentives for development in the Ko Olina area. The construction of a world-class aquarium would enhance Hawaii's overall appeal as a leisure destination and would help reinvigorate the economy in west Oahu.

Your Committee notes that during the public hearing for this measure, representatives from Ko Olina Resorts and Marina testified that this tax credit will only be used to apply to costs associated with a world-class aquarium and that these representatives are currently working to develop a Memorandum of Understanding with DOTAX to establish this in writing. Your Committee has passed this measure with the understanding that the tax credit will only apply to costs associated with the development and construction of a world-class aquarium at Ko Olina, and supports future legislative efforts that may become necessary to clarify this position.

As affirmed by the record of votes of the members of your Committee on Tourism and Culture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1279 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 Tourism and Culture,

 

____________________________

JERRY L. CHANG, Chair