STAND. COM. REP. NO. 635

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1241

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1241 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to repeal the conveyance tax exemption for the sale or transfer of real property that has been certified by the Hawaii Housing Finance and Development Corporation for low income housing development.

 

     Your Committee received written comments in support of this measure from Betty Lou Larson, Legislative Liaison, Catholic Charities Hawaii.  Your Committee received written comments in opposition to this measure from Michael Kaho'ohanohano.  Your Committee received comments on this measure from the Tax Foundation of Hawaii.

 

     Your Committee finds that this measure will prevent future reductions in state revenues by repealing the conveyance tax exclusion for real property transferred for affordable housing.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the issue; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1241, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1241, S.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair