STAND. COM. REP. NO. 1162-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.C.R. No. 162
                                     




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

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.C.R. No. 162 entitled: 

     "HOUSE CONCURRENT RESOLUTION ASSESSING THE COSTS AND
     BENEFITS OF ESTABLISHING AN ANNUAL RETAIL TAX HOLIDAY IN
     HAWAII,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request the
Legislative Reference Bureau to conduct a study to determine the
costs and benefits of suspending the four percent general excise
tax for a period of several days each year on clothing and
footwear, where the sales price is less than $100.

     The exemption would apply to each article of clothing
selling for less than $100, regardless of how many items are sold
and regardless of the total amount of the bill.

     The Hawaiian Political Action Council of Hawaii (HPACH), the
National Federation of Independent Business, the Retail Merchants
of Hawaii, and an individual submitted testimony in support of
the measure.  The Department of Taxation submitted comments on
the measure.

     Your Committee notes the testimony of HPACH, which
recommends that the tax free holidays be King Kamehameha Day and
the birth dates of King Kamehameha II, King Kamehameha III, King
Kamehameha IV, King Kamehameha V, King Lunalilo, King Kalakaua,
and Queen Liliuokalani.

 
 
                                 STAND. COM. REP. NO. 1162-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee concurs with the intent
and purpose of H.C.R. No. 162 and recommends that it be referred
to the Committee on Finance.

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



                                   ______________________________
                                   ROBERT N. HERKES, Chair