STAND. COM. REP. 368

Honolulu, Hawaii

, 2003

RE: H.B. No. 1327

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred H.B. No. 1327 entitled:

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

begs leave to report as follows:

The purpose of this bill is to exempt from the conveyance tax any document or instrument that transfers assets to or from a disregarded entity.

The Department of Taxation and the Tax Foundation of Hawaii offered comments.

Your Committee notes that the bill as referred to this Committee may be interpreted to allow virtually all transfers involving a disregarded entity to be exempt from the conveyance tax.

In light of this, your Committee has amended this measure by clarifying that the conveyance tax does not apply to any document or instrument that transfers an interest in real property to or from the person taxed for net income tax purposes as the owner of such interest and a disregarded entity.

 

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1327, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1327, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water, Land Use, and Hawaiian Affairs,

 

____________________________

EZRA R. KANOHO, Chair