STAND. COM. REP. NO. 2885

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 1691
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred H.B. No. 1691, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to exempt certain foreign
diplomatic and consular mission members from the general excise,
transient accommodations, and use taxes.

     Testimony in support of the measure was received from the
U.S. Department of State, and the Career Consular Corps in
Hawaii.  The Department of Taxation and Tax Foundation of Hawaii
submitted comments.

     Your Committee finds that this measure will bring Hawaii
into conformity with the rest of the United States, as Hawaii
currently is the only State that does not grant these exemptions.

     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 1691, H.D. 1, and recommends that
it pass Second Reading and be referred to the Committee on Ways
and Means.


 
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                                   STAND. COM. REP. NO. 2885
                                   Page 2


                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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