STAND. COM. REP. NO. 3205

                                   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 Ways and Means, 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 certain taxes.

     This measure:

     (1)  Exempts amounts received from officially recognized
          foreign diplomats and consular officials from the
          general excise tax;

     (2)  Exempts accommodations furnished to officially
          recognized foreign diplomats and consular officials
          from the transient accommodations tax; and

     (3)  Exempts the use of property, services, or contracting
          imported by officially recognized foreign diplomats and
          consular officials from the use tax.

     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 Ways and Means that is attached to this report, your

 
a                                                     HB1691 HD1
                                   STAND. COM. REP. NO. 3205
                                   Page 2


Committee is in accord with the intent and purpose of H.B.
No. 1691, H.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB1691 HD1