STAND. COM. REP. NO. 860-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1944
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1944, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO PUBLIC SERVICE COMPANY TAX,"

begs leave to report as follows:

     The purpose of this bill is to avoid having consumers bear
the burden of a two-tiered taxation by providing the respective
counties with the option of either sharing revenues collected
under the State's Public Service Company Tax, in lieu of real
property taxes, or foregoing the revenue sharing and electing to
collect real property taxes.

     The City and County of Honolulu, Maui County Council, Kauai
County Council and Administration, County of Hawaii Corporation
Council, GTE Hawaiian Tel, Hawaiian Electric Company, Inc.,
Hawaii Electric Light Company, Maui Electric Company, Kauai
Electric, The Gas Company, and the Hawaii County Council Chair
testified in support of this measure.  The Tax Foundation of
Hawaii submitted comments.

     Your Committee has amended this measure by:

     (1)  Deleting specific dates relating to the disposition of
          revenues to facilitate further discussion; and

     (2)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

 
 
 
                                 STAND. COM. REP. NO. 860-00
                                 Page 2

 

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1944, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1944, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair