HB2700 HSCR226-02

 

STAND. COM. REP. NO.226-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2700

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 2700 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this bill is to help the people of Hawaii through tax incentives and assistance.

More specifically, this bill stimulates economic growth to encourage the revitalization of older commercial districts by:

(1) Establishing a tax credit of five per cent of the construction or renovation costs incurred for commercial, retail, hotel, warehouse, or industrial facilities, provided that the facility or the commercial district where the facility is located is at least 25 years old;

(2) Requiring the taxpayer to pay all employees prevailing wages for projects costing over $2,500,000; and

(3) Requiring the Director of Taxation to submit a report to the Governor and the Legislature on this tax credit to help the Legislature determine whether this tax credit should be continued at the termination of the credit in 2008.

This bill also provides financial assistance to low-income earners by:

(3) Establishing a low-income tax credit for taxpayers with an adjusted gross income of $20,000 or less; and

(4) Increasing the standard deduction amount for income tax purposes.

Testimony in support of this measure was submitted by the

American Institute of Architects Hawaii State Council, Hawaii CCIM Chapter, and the General Contractors Association of Hawaii. The Hawaii Tourism Authority, the Building Owners and Managers Association Hawaii, Hawaii Certified Commercial Investment Member Chapter, Department of Business, Economic Development, and Tourism, and the Building Industry Association of Hawaii supported the intent of this bill. The Department of Taxation and the Tax Foundation of Hawaii offered comments. The Department of Budget and Finance opposed this bill.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2700 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,

 

		____________________________ LEI AHU ISA, Chair