STAND. COM. REP. NO. 38

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1500

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Intergovernmental and Military Affairs, to which was referred S.B. No. 1500 entitled:

 

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR DEPARTMENT OF TAXATION COUNTY SURCHARGE IMPLEMENTATION COSTS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to make an emergency appropriation of $4,500,000 to the Department of Taxation to address unbudgeted expenses incurred by the Department in implementing the administration of the county surcharge on the State's General Excise Tax provided for under section 46-16.8, Hawaii Revised Statutes.

 

     Testimony in support of the measure was submitted by the State of Hawaii Department of Taxation, and the City and County of Honolulu Department of Budget and Fiscal Services.

 

     Your Committee finds that it is necessary to increase the appropriation to the Department of Taxation from $4,500,000 to $5,000,000 in order for it to fulfill its obligations with the tax collection system software vendor and to cover expenses related to the administration and collection of the county surcharge on the State's General Excise Tax. 

 

     Your Committee further finds that this emergency appropriation is necessary and in the best interest of the public to assure that the City and County of Honolulu's county surcharge on the State's General Excise Tax is not adversely impacted.  An adverse impact could ultimately affect the funding of the City and County of Honolulu's mass transit project, including the ability of the City and County of Honolulu to obtain federal funding for the mass transit project.  Failure to provide this emergency appropriation will also result in the City and County of Honolulu surrendering its guarantee for these costs.

 

     In light of these findings your Committee has amended the measure by increasing the amount appropriated from $4,500,000 to $5,000,000.

 

     As affirmed by the record of votes of the members of your Committee on Intergovernmental and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1500, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1500, S.D. 1, and be referred to the Committee on Economic Development and Taxation.

 

Respectfully submitted on behalf of the members of the Committee on Intergovernmental and Military Affairs,

 

 

 

____________________________

LORRAINE R. INOUYE, Chair