STAND. COM. REP. NO. 1075
RE: S.B. No. 867
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2019
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 867, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose and intent of this measure is to provide additional incentives to increase rental housing development in the State, particularly development of affordable rental housing units, to meet housing demand.
Specifically, this measure:
(1) Removes certain limits on costs eligible for a general excise tax exemption for newly constructed or renovated affordable rental housing projects; and
(2) Make permanent provisions relating to the types of rental housing projects that are exempt from the general excise tax and prevailing wages for the construction of certain rental housing projects.
Your Committee received written comments on this measure from the Department of Taxation, Hawaii Housing Finance and Development Corporation, and Tax Foundation of Hawaii.
Your Committee finds this measure will allow more projects to be certified for general excise tax exemption, thereby promoting the development of more affordable housing in Hawaii.
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. 867, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair