STAND. COM. REP. NO. 1826

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1178
                                     S.D. 2
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1178, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAXATION
     OF RELATED ENTITIES,"

begs leave to report as follows:

     The purpose of this bill is to stem potential significant
tax revenue loss by clarifying the definition of "related
entities" for purposes of the general excise tax.

     The Department of Taxation testified in support of this
bill.  The Tax Foundation of Hawaii commented on the bill.

     Your Committee has amended this bill by making technical,
nonsubstantive changes for consistency.

     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 S.B. No.
1178, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1178,
S.D. 2, H.D. 2.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 1826
                                 Page 2

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair