CONFERENCE COMMITTEE REP. NO. -0 220-06

Honolulu, Hawaii

, 2006

RE: S.B. No. 2076

S.D. 2

H.D. 2

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2076, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO LEASEHOLD CONVERSION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of the measure is to encourage lessors of residential real properties to sell their fee simple interest by providing an incentive in the form of an income tax exemption for one hundred per cent of the gain realized from the sale.

Your Committee finds that the exclusion of a portion of the capital gain from the sale of leased fee interests to lessees would provide fee owners with the proper incentive to sell that interest in their real property.

Your Committee has amended the measure to:

(1) Set a cap of $800,000 in the aggregate for all taxpayers in the State in any tax year on the amount of capital gain tax exclusion;

(2) Amend the sunset date to January 1, 2009; and

(3) Change the effective date to July 1, 2006.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2076, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2076, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

MICHAEL P. KAHIKINA, Co-Chair

____________________________

RON MENOR, Chair

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ROBERT N. HERKES, Co-Chair

____________________________

BRIAN T. TANIGUCHI, Co-Chair

____________________________

SCOTT NISHIMOTO, Co-Chair