STAND. COM. REP. NO. 500

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 129
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 129 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to establish a 3% general excise
tax on the sale of supplies and equipment used in the operation
of the business, are not for resale, and are sold from a licensed
taxpayer to another licensed taxpayer. 

     General comments regarding tax reform were provided by the
Department of Taxation, the AIA Hawaii State Council, the Chamber
of Commerce of Hawaii, the Hawaii Business Roundtable, the League
of Women Voters of Hawaii, the National Federation of Independent
Business Hawaii, the Small Business Economic Revival Force, the
Tax Foundation of Hawaii, and three individuals.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 129 and recommends that it pass
Second Reading and be referred to the Committee on Finance.


 
 
 
 
 
 
 
                                 STAND. COM. REP. NO. 500
                                 Page 2

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



                                   ______________________________
                                   ROBERT N. HERKES, Chair