STAND. COM. REP. NO. 186

Honolulu, Hawaii

, 2005

RE: H.B. No. 817

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 817 entitled:

"A BILL FOR AN ACT RELATING TO ELECTRONIC COMMERCE,"

begs leave to report as follows:

The purpose of this bill is to direct the Department of Taxation (DOTAX) to make recommendations on how to amend existing general excise tax statutes to conform to the model Streamlined Sales and Use Tax Agreement.

The Retail Merchants of Hawaii testified in support of this bill. DOTAX commented on the bill.

Your Committee finds that the explosion of Internet-related commerce has put brick and mortar businesses at a disadvantage compared to online merchants due to the disparity in tax requirements.

The State needs to address the demand for products purchased online and their effect on the State's revenue, as well as assist storefront Hawaii businesses, by removing this unfair advantage enjoyed by on-line, non-Hawaii-based competitors.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 817 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

 

____________________________

ROBERT N. HERKES, Chair