STAND. COM. REP. NO. 871

 

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 Ways and Means, to which was referred S.B. No. 971, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require rental housing projects to enter into regulatory agreements with the Hawaii Housing Finance and Development Corporation with regard to minimum required periods of affordability, in order to receive certification from the Corporation for an exemption from the general excise tax.

 

     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation and two individuals.  Written comments in opposition to this measure were received from one individual.  Written comments on the measure were received from the Department of Taxation and the Tax Foundation of Hawaii.

 

     Your Committee finds that by setting minimum statutory affordability terms for rental housing projects, this measure will ensure that any improvements to a rental housing project that is exempted from the general excise tax will accrue to the benefit of lower income households for a period commensurate with the extent of the improvements.

 

     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. 971, S.D. 1, and recommends that it pass Third Reading.

 

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

 

 

 

________________________________

JILL N. TOKUDA, Chair