STAND. COM. REP. NO.831

Honolulu, Hawaii

, 2003

RE: S.B. No. 1397

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1397 entitled:

"A BILL FOR AN ACT RELATING TO SIMPLIFIED TAX ADMINISTRATION,"

begs leave to report as follows:

The purpose of this measure is to authorize the State's participation in multistate discussions relating to the Streamlined Sales Tax Project.

The Streamlined Sales Tax Project is intended to streamline the administration of state sales and use taxes and reduce the burden of tax compliance by addressing issues relating to the multiplicity of state sales and use tax rates, definitions, and taxing jurisdictions. Among the goals of the project are:

(1) A single state sales tax rate;

(2) Uniform definitions of sales and use tax terms;

(3) Requiring states to administer local and use taxes; and

(4) A central electronic registration system to allow a seller to register to collect and remit sales and use taxes for all states.

Your Committee finds that the Project is a means to develop a simpler, uniform, and fairer system of sales and use taxation that preserves state sovereignty and enhances the ability of United States firms to compete in the global economy.

Your Committee has amended the bill by specifying the method of appointing the advisory group that is consulted by the Department of Taxation and by making technical changes that have no substantive effect.

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. 1397, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1397, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair