STAND. COM. REP. 925

Honolulu, Hawaii

, 2003

RE: S.B. No. 1629

S.D. 1

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Tourism and Culture, to which was referred S.B. No. 1629, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"

begs leave to report as follows:

The purpose of this bill is to exempt from the general excise tax (GET) amounts received by:

(1) A submanager of an association of apartment owners of a condominium or a nonprofit homeowners or community association in reimbursement of sums paid for common expenses;

(2) An operator of a hotel from a timeshare association equal to and which are disbursed by the operator for employee wages, salaries, payroll taxes, insurance premiums, and benefits; and

(3) A suboperator of a hotel from the owner of the hotel, operator of the hotel, or a timeshare association, equal to and which are disbursed by the suboperator for employee wages, salaries, payroll taxes, insurance premiums, and benefits.

Outrigger Hotels supported this bill. The Department of Taxation opposed this measure. The Tax Foundation of Hawaii offered comments.

Your Committee believes that the extension of GET exemptions contained in this measure helps to ensure equitable treatment for taxpayers in similar situations.

Your Committee has amended this bill by establishing that the provisions of the bill shall apply to amounts received after December 31, 2002, instead of June 30, 2003.

As affirmed by the record of votes of the members of your Committee on Tourism and Culture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1629, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1629, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

Respectfully submitted on behalf of the members of the Committee on Tourism and Culture,

 

____________________________

JERRY L. CHANG, Chair