Bill Text: HI SB769 | 2012 | Regular Session | Amended
Bill Title: Construction Task Force (2010); Taxation; Hotel Construction and Renovations
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Engrossed - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB769 Detail]
Download: Hawaii-2012-SB769-Amended.html
STAND. COM. REP. NO. 308
Honolulu, Hawaii
RE: S.B. No. 769
S.D. 1
Honorable Shan S. Tsutsui
President of the Senate
Twenty-Sixth State Legislature
Regular Session of 2011
State of Hawaii
Sir:
Your Committee on Tourism, to which was referred S.B. No. 769 entitled:
"A BILL FOR AN ACT RELATING TO ECONOMIC RECOVERY,"
begs leave to report as follows:
The purpose and intent of this measure is to provide a seven to ten percent tax credit for qualified hotel construction and renovation costs incurred after December 31, 2010, and before January 1, 2015. The intent of this measure is to boost Hawaii's construction and visitor industries.
Your Committee received testimony in support of this measure from the Director of Taxation, Waikiki Improvement Association, Hawaii Carpenters Union, The Pacific Resource Partnership, Land Use Research Foundation of Hawaii, and The Resort Group. Your Committee received testimony in opposition to this measure from one private citizen. Your Committee received comments on this measure from the Tax Foundation of Hawaii.
Your Committee finds that this measure has the potential to preserve and create new jobs in the local construction industry throughout the State. However, your Committee also finds that in order for this measure to be effective, there is a need to secure current commitments from private developers to utilize the Hotel and Resort Property Construction and Renovation Tax Credit proposed under this measure. Without these commitments, the measure will allocate state revenues that will not be fully utilized and could otherwise be put to better use. Based on testimony received, your Committee would like to receive feedback from the industry on what projects are far enough along in the planning, development, and financing stages that could take advantage of the tax credit proposed under this measure.
Accordingly, your Committee has amended this measure by:
(1) Removing the specific percentages and dollar amounts associated with the Hotel and Resort Property Construction and Renovation Tax Credit;
(2) Changing the expiration date to claim the tax credit for qualified hotel and resort property construction or renovation costs incurred before January 1, 2015; and
(3) Inserting an effective date of July 1, 2050, to allow for further discussion.
As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 769, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 769, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Tourism,
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____________________________ DONNA MERCADO KIM, Chair |
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