STAND. COM. REP. NO.  425

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1604

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Water, Land, & Ocean Resources, to which was referred H.B. No. 1604 entitled:

"A BILL FOR AN ACT RELATING TO REAL PROPERTY,"

begs leave to report as follows:

     The purpose of this bill is to establish a tax on the value of improvements, surrendered by a lessee to a lessor, without compensation to the lessee, at the expiration of a long-term lease of non-residential real property.

     A concerned individual testified in support of this bill.  Kamehameha Schools opposed this measure.  The Tax Foundation of Hawaii provided comments.

     As affirmed by the record of votes of the members of your Committee on Water, Land, & Ocean Resources that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1604 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 Water, Land, & Ocean Resources,

____________________________

KEN ITO, Chair