STAND. COM. REP. NO. 603-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2876
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2876, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to provide tax relief for the
construction industry by allowing contractor-taxpayers to pay the
general excise tax (GET) on a cash basis, provided that the
contractor-taxpayer notifies the Department of Taxation (DOTAX)
of the basis upon which the GET is to be reported.

     Hidano Construction, the Construction Industry Legislative
Organization, the Plumbing and Mechanical Contractors Association
of Hawaii, the Building Industry Association of Hawaii, the
General Contractors Association of Hawaii, the Hawaii Surety
Association, and an individual testified in support of this
measure.  The Tax Foundation of Hawaii submitted comments.  DOTAX
submitted comments, testifying that it is not opposed to this
measure.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2876, H.D. 1, as amended herein, and recommends that it pass

 
 
 
                                 STAND. COM. REP. NO. 603-00
                                 Page 2

 
Third Reading in the form attached hereto as H.B. No. 2876, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair