STAND. COM. REP. NO. 2762
RE: S.B. No. 2188
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2188, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"
begs leave to report as follows:
The purpose and intent of this measure is to use the conveyance tax as a source of funding for affordable housing.
More specifically, the measure:
(1) Increases the conveyance tax on the sale of each condominium and single family residence with a value of at least $2,000,000; and
(2) Requires that all revenues received as result of the foregoing tax increase be paid into the respective county's affordable housing fund.
Your Committee received written comments in support of this measure from the Office of Hawaiian Affairs, the Maui County Council, and three individuals.
Your Committee received written comments in opposition to this measure from the Hawaii Association of REALTORS and the Land Use Research Foundation of Hawaii.
Your Committee received written comments on this measure from the Department of Taxation.
Your Committee finds that the demand for affordable housing far exceeds supply, and that increasing the availability of affordable housing should be a top priority. Your Committee believes that this measure will lead to an increase in funding for affordable housing.
Your Committee has amended this measure by:
(1) Changing the effective date to January 1, 2019, to allow the Department of Taxation sufficient time to update forms and instructions that are relevant to the purposes of this measure; and
(2) Making technical nonsubstantive changes for 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. 2188, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2188, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair