STAND. COM. REP. NO. 2447

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2308
                                        S.D. 2




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 S.B.
No. 2308, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to allow the counties to be
reimbursed for amounts of general excises taxes paid by the
counties that are passed on to them by general excise tax
licensees after June 30, 2001.

     This measure requires each county to submit an itemized
claim to the Director of Finance for reimbursement of general
excise taxes passed on to them by vendors of goods and services.

     The intent of this measure is to relieve the counties of the
burden of paying the State's excise tax.  The alternative is to
exempt sales to counties from the excise tax, which could be
subject to abuse by vendors.

     Your Committee has amended this measure by deleting the
specified percentages of reimbursements.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2308, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2308, S.D.
2.

 
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                                   STAND. COM. REP. NO. 2447
                                   Page 2



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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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