STAND. COM. REP. NO. 1229

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1183

       H.D. 2

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1183, H.D. 2, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend Hawaii's tax laws that will allow the State to participate in the national Streamlined Sales and Use Tax Agreement.

 

     Furthermore, this measure creates a committee within the Department of Taxation to oversee the Department of Taxation's implementation and administration of, and compliance with, the Streamlined Sales and Use Tax Agreement.

 

     Your Committee received comments in support of this measure from Craig Hirai, Member, Subcommittee on Taxation and Finance, Hawaii Association of REALTORS; Carol Pregill, President, Retail Merchants of Hawaii; and Tammy Cota, Executive Director, Internet Alliance.

 

     Your Committee received comments on this measure from the Tax Foundation of Hawaii.

 

     Your Committee finds that this measure will make it possible for the State to collect interstate sales taxes without placing burdens on interstate commerce, thereby "leveling the playing field" between local and out-of-State retailers.  Your Committee also finds that the State's participation in the Streamlined Sales and Use Tax Agreement has the potential to achieve better tax definitions and uniformity between participating states, as well as improved tax compliance by interstate vendors.

 

     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 H.B. No. 1183, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair