STAND. COM. REP. NO. 1974

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.C.R. No. 53
                                     S.D. 1




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

Sir:

     Your Committees on Labor and Public Employment and Economic
Development and Business Concerns, to which was referred S.C.R.
No. 53, S.D. 1, entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF
     TAXATION TO AMEND ITS RULES FOR EMPLOYERS PAYING STATE
     WITHHOLDING TAXES FOR NONRESIDENTS,"

beg leave to report as follows:

     The purpose of this concurrent resolution is to repeal the
exemption from withholding for nonresident employees of contractors
in the construction industry and require that their wages be
subject to withholding regardless of residency by requiring the
Department of Taxation to amend section 18-235-61-04, Hawaii
Administrative Rules.

     The Department of Taxation and Senator Cal Kawamoto commented
on this measure.

     As affirmed by the records of votes of the members of your
Committees on Labor and Public Employment and Economic
Development and Business Concerns that are attached to this
report, your Committees concur with the intent and purpose of
S.C.R. No. 53, S.D. 1, and recommend that it be referred to the
Committee on Finance.


 
 
 
 
 
                                 STAND. COM. REP. NO. 1974
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and Public
                                   Employment and Economic
                                   Development and Business
                                   Concerns, 




_____________________________      ______________________________
ROBERT N. HERKES, Chair            TERRY NUI YOSHINAGA, Chair