STAND. COM. REP. NO. 1067

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 530

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 530, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to provide certain exemptions to the general excise tax.

 

     Specifically, this measure:

 

     (1)  Exempts from the general excise tax the sale of mobility enhancing equipment, prescription drugs sold pursuant to a doctor's prescription, and prosthetic devices; and

 

     (2)  Expands the scope of devices included in the existing definition of prosthetic device for purposes of the general excise tax exemption.

 

     Your Committee received written comments in support of this measure from the Policy Advisory Board for Elder Affairs.

 

     Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

 

     Your Committee finds that mobility enhancing equipment, hearing aids, prescription drugs, and prosthetic devices are necessary for many disabled individuals.  Your Committee believes that the exemptions provided in this measure will provide relief to these customers.

 

     Your Committee has amended this measure by:

 

     (1)  Applying the Act to taxable years beginning after December 31, 2050, to facilitate further discussion on the measure; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 530, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 530, S.D. 2.

 

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair