THE SENATE
                 THE TWENTIETH LEGISLATURE
                  REGULAR SESSION OF 1999

                COMMITTEE ON WAYS AND MEANS
             Senator Carol Fukunaga, Co-Chair
              Senator Andrew Levin, Co-Chair

                     NOTICE OF HEARING

        DATE:    Saturday, March 27, 1999

        TIME:    3:30 p.m. 

        PLACE:   Conference Room 211
                 State Capitol
                 415 South Beretania Street


                        A G E N D A


H.B. 232 RELATING TO TAXATION                            WAM
H.D. 2   Establishes a general excise tax structure for
        services similar to that of goods.  The new structure
        retains the four per cent tax on the final service
        provided and gradually over a period of seven years
        lowers the tax on intermediary services to half a per
        cent, the same as applied to the sale of wholesale
        goods.

It is the intent of The Committee to solicit comments on the
Alternative Proposal.  H.B. 232 H.D. 2 reflects the House
position on the de-pyramiding of the GET, the Senate position is
reflected in S.B. 638 S.D. 1.

ALTERNATIVE      RELATING TO TAXATION
PROPOSAL Establishes a general excise tax structure for
        services similar to that of goods and increases the 4%
        rate to 5.35%.  Imposes the 5.35% on the final service
        but over 7 years phases in a reduction on intermediary
        services by allowing a phased-in deduction resulting
        in a half a per cent rate by 2005, the same as applied
        to the sale of wholesale goods.  Earmarks amount of
        revenues generated by 1.35 percentage points for
        education purposes.    

It is the intent of the Committee to consider the substance of
either the Alternative Proposal or H.B. 232 H.D. 2.  Copies of
The Alternative Proposal are available in Rooms 210 and 213.


        DECISION MAKING TO FOLLOW, IF TIME PERMITS.


 
Persons wishing to testify should submit 35 copies of their
testimony to the committee clerk, Room 210, State Capitol, 24
hours prior to the hearing. Testimony may also be faxed if less
than 5 pages in length, to the Senate Sergeant-At-Arms Office at
586-6659 or 1-800-586-6659 (toll free for neighbor islands), at
least 24 hours prior to the hearing.  When faxing, please
indicate to whom the testimony is being submitted, the date and
time of the hearing, and the required number of copies needed for
submittal.

If you require special assistance or auxiliary aids or services
to participate in the public hearing process (i.e., sign language
interpreter, wheelchair accessibility, or parking designated for
the disabled), please contact the committee clerk 24 hours prior
to the hearing so arrangements can be made.

Public Folder.  A folder labeled "Public Folder" containing the
measures and testimonies for the hearing will be available for
shared use by members of the public.

FOR FURTHER INFORMATION, PLEASE CALL THE COMMITTEE CLERK AT 586-
6800.



____________________________      _______________________________
Senator Carol Fukunaga            Senator Andrew Levin
Co-Chair                          Co-Chair