STAND. COM. REP. NO. 263

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1165

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1165 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to repeal the sunset date on the general excise tax exemption on monies paid by timeshare operators and condominium submanagers for employee wages, salaries, payroll taxes, insurance premiums, and employee benefits.

 

     Your Committee received testimony in support of this measure from Wyndham Worldwide, American Resort Development Association, Marriott Vacation Club International, Inc., and Outrigger Hotels.  Your Committee received testimony on this measure with comments from the Department of Taxation and Tax Foundation of Hawaii.  Written testimony presented to the Committee may be reviewed on the Legislature’s website.

 

     Your Committee finds that this measure will result in no additional loss of revenue to the State, since it merely continues a tax exemption that is already in place.  Your Committee also finds that this exemption levels the playing field with regard to tax treatment for similarly situated entities: operators of hotels, timeshares, and condotels.   Therefore, the exemption for operators of timeshare and condotels should be made permanent.

 

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1165 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

 

 

 

____________________________

ROSALYN H. BAKER, Chair