STAND. COM. REP. NO. 11

 

Honolulu, Hawaii

 

RE: S.B. No. 971

S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

Your Committee on Human Services and Housing, to which was referred S.B. No. 971 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

The purpose and intent of this measure is to:

 

(1) Require each rental housing project with a general excise tax exemption to enter into a regulatory agreement with the Hawaii Housing Finance and Development Corporation to ensure the project's continued eligibility for the tax exemption; and

 

(2) Establish minimum terms for the agreements depending on the type of project.

 

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and Hawaii Association of REALTORS. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

 

Your Committee finds that encouraging private sector investment and construction of rental housing for Hawaii's families is critical. According to the Hawaii Housing Planning Study in 2011, there is an estimated need for over 13,000 rental units by 2016 for households at or below eighty percent of the area median income. Of those needed rental units, nearly seventy-five percent are needed by households at or below fifty percent of the area median income.

 

Your Committee has amended this measure by deleting its contents and replacing them with the contents of S.B. No. 1075, Regular Session of 2015, which ensures that certain eligible housing projects will remain affordable for certain minimum periods in order to be certified for exemption from general excise taxes.

 

As affirmed by the record of votes of the members of your Committee on Human Services and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 971, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 971, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Human Services and Housing,

 

 

 

____________________________

SUZANNE CHUN OAKLAND, Chair