STAND. COM. REP. NO. 2225

Honolulu, Hawaii

RE: S.B. No. 2654

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Hawaiian Affairs and Housing, to which was referred S.B. No. 2654 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to exempt any development of homestead lots or housing for the Department of Hawaiian Home Lands from general excise and use taxes.

Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands; Keaukaha Panaʻewa Farmers Association; Hoʻomana Pono, LLC; Dowling Company, Inc; and nine individuals.

Your Committees received testimony in opposition to this measure from one individual.

Your Committees received comments on this measure from the Department of Budget and Finance, Department of Taxation, and Tax Foundation of Hawaii.

Your Committees find that homestead lots or housing developed for the Department of Hawaiian Home Lands that is awarded to native Hawaiians, are offered at rates that are affordable in comparison to similar housing opportunities available in Hawaii. This measure will exempt any development of homestead lands from general excise and use taxes, which will further reduce the housing costs for Department of Hawaiian Home Lands beneficiaries.

Your Committees have amended this measure by:

(1) Specifying that the tax exemptions proposed by this measure shall apply only to housing projects that shall be awarded to and occupied by beneficiaries of the Department of Hawaiian Home Lands; and

(2) Inserting an effective date of July 1, 2024.

As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2654, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2654, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Hawaiian Affairs and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ MAILE S.L. SHIMABUKURO, Chair