STAND. COM. REP. 126

Honolulu, Hawaii

, 2003

RE: H.B. No. 1631

 

 

 

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 H.B. No. 1631 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 property regime 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 in amounts 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 in amounts 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 and Tax Foundation of Hawaii offered comments.

Your Committee notes that this bill addresses some of the loopholes in the GET law by affording suboperators and submanagers the same GET exemptions as those of operators and managers. In addition, this measure allows a GET exemption for amounts received by operators or suboperators from a timeshare association.

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 H.B. No. 1631 and recommends that it pass Second Reading 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