STAND. COM. REP. NO.  1228-12

 

Honolulu, Hawaii

                , 2012

 

RE:   S.B. No. 2238

      S.D. 1

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization & Business, to which was referred S.B. No. 2238, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to repeal Act 155, Session Laws of Hawaii 2010.

 

     The Chamber of Commerce of Hawaii; Chun, Kerr, Dodd, Beaman & Wong; American Council of Life Insurers; Hawaii Alliance of Nonprofit Organizations; National Federation of Independent Business; and several individuals testified in support of this measure.  The Department of Taxation and the Tax Foundation of Hawaii provided comments on this measure.

 

     Your Committee has amended this measure by deleting its contents and replacing them as follows:

 

     (1)  Inserting the contents of H.B. No. 1672, H.D. 1, Regular Session of 2012, which establishes monetary awards for whistleblowers providing information that is the basis for a Department of Taxation administrative or judicial action for violations of tax laws;

 

     (2)  Inserting the contents of H.B. No. 1695, Regular Session of 2012, which prohibits penalties for substantial understatements or misstatements and for erroneous claims for refund or credit from being added to tax underpayments on which certain other penalties are already imposed;

 

     (3)  Amending the statutes enacted under Act 155, Session Laws of Hawaii 2010, in order to mandate that nonprofit organizations receive 90 days notice before the denial of general excise tax benefits and to exempt from personal liability persons having control of certain amounts held in trust for nonprofit organizations;

 

     (4)  Changing the effective date to July 1, 2112, to facilitate further discussion; and

 

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2238, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2238, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

 

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

 

 

 

 

____________________________

ANGUS L.K. McKELVEY, Chair