Bill Text: HI SB2887 | 2010 | Regular Session | Amended

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Bill Title: Taxation; Disposition of Real Property; Withholding

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2010-03-30 - (H) The committee(s) recommends that the measure be deferred. [SB2887 Detail]

Download: Hawaii-2010-SB2887-Amended.html

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STAND. COM. REP. NO. 2593

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2887

       S.D. 2

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 2887, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to exempt from income tax withholding certain real property transfers to non-residents.

 

More specifically, this measure would exempt from tax withholding those transfers in which:

 

(1)  The transferee acquires the real property through foreclosure;

 

(2)  The transferor acquires real property with a fair market value that exceeds that of the real property acquired by the transferee; and

 

(3)  The amount realized on the transfer of a timeshare interest does not exceed $100,000.

 

     Comments in support of this measure were received from Marriot Vacation Club International.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that exemption from tax withholding when the transferor realizes little or no gain on the transaction balances the State's interest in effective tax collection and the property owners' interest in the efficient completion of real estate transactions.

 

     On further consideration, your Committee has amended this measure by:

 

     (1)  Deleting an exemption from tax withholding for a time share interest that does not exceed $100,000 in value; and

 

     (2)  Making technical nonsubstantive changes for the purposes of clarity and consistency.

 

     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. 2887, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2887, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

		____________________________ DONNA MERCADO KIM, Chair