STAND. COM. REP. NO. 580
RE: S.B. No. 1121
Honorable Ronald D. Kouchi
President of the Senate
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 1121, 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 exempt from general excise taxes housing developed by the Department of Hawaiian Home Lands so that the department may more fully commit its funding toward fulfilling its mission of developing housing.
Your Committee received written testimony in support of this measure from the Department of Taxation, Department of Hawaiian Home Lands, Office of Hawaiian Affairs, and Hawaiian Affairs Caucus of the Democratic Party of Hawaii.
Your Committee received written comments on this measure from the Tax Foundation of Hawaii.
Your Committee finds that this measure would save the Department of Hawaiian Home Lands more than $9,500,000 in general excise taxes for four large-scale development projects that are currently underway. Your Committee further finds that the general excise tax savings that accrue from this measure can be applied to the development of additional housing and associated infrastructure, allowing the Department of Hawaiian Home Lands to more fully commit its funding toward its mission.
Your Committee has amended this measure by:
(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and
(2) Making technical nonsubstantive amendments 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. 1121, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1121, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair