STAND. COM. REP. NO. 1376-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2486
                                     S.D. 2
                                     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 S.B. No.
2486, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to establish a system for
imposing the tax on cigarettes through the use of stamps sold by
the Department of Taxation (DOTAX) to wholesalers and dealers of
cigarettes, who are to affix the stamps to cigarette packages
prior to distribution.

     The Department of the Attorney General, the Department of
Health, and Legislative Information Services of Hawaii testified
in support of this bill.  DOTAX supported the intent of this
bill.  The Tax Foundation of Hawaii offered comments on this
bill.

     Your Committee has amended this bill by:

     (1)  Changing the effective date to take effect upon its
          approval instead of July 1, 2050; and

     (2)  Making technical, nonsubstantive changes for clarity,
          consistency, and style.

 
 
 
 
 
                                 STAND. COM. REP. NO. 1376-00
                                 Page 2

 

     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 S.B. No.
2486, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2486,
S.D. 2, H.D. 2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair