STAND. COM. REP. NO. 507

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1266
                                     




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

Sir:

     Your Committees on Economic Development and Business
Concerns and Tourism, to which was referred H.B. No. 1266
entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to provide tax incentives for
the construction of hotel, time share project developments,
resort developments, and other retail sales projects by exempting
such projects from the general excise tax. 

     Testimony in support of this bill was provided by the Hawaii
Hotel Association.

     General comments regarding tax reform were provided by the
Department of Taxation, the AIA Hawaii State Council, the Chamber
of Commerce of Hawaii, the Hawaii Business Roundtable, the League
of Women Voters of Hawaii, the National Federation of Independent
Business Hawaii, the Small Business Economic Revival Force, the
Tax Foundation of Hawaii, and three individuals.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Business Concerns and
Tourism that are attached to this report, your Committees are in
accord with the intent and purpose of H.B. No. 1266 and recommend
that it pass Second Reading and be referred to the Committee on
Finance.

 
 
                                 STAND. COM. REP. NO. 507
                                 Page 2

 


                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Business
                                   Concerns and Tourism,

                                   
                                   
                                   
                                   
______________________________     ______________________________
JERRY L. CHANG, Chair              ROBERT N. HERKES, Chair