CONFERENCE COMMITTEE REPORT NO.109

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 2716
                                  S.D. 1
                                  H.D. 1
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

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

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 2716, S.D. 1, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO TAXATION," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to provide that the one-half
of one percent wholesale tax rate for general excise and use
taxes applies:

     (1)  To sales by a printer to a publisher of magazines or
          similar materials containing advertisements;

     (2)  When the publisher is under contract with advertisers
          to distribute a minimum number of the materials to the
          public; and


 
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     (3)  Whether or not the publisher charges the public for the
          material or distributes it without charge to the
          public.

     The change in tax rate proposed under the measure would take
effect on July 1, 2005.

     Upon further consideration, your Committee has amended the
measure by reverting the language contained in the House Draft 1
back to the language contained in the Senate Draft 1.

     Specifically, your Committee has amended the effective date
to state that upon approval, the measure shall apply to gross
income or gross proceeds received, or gross value accruing, after
June 30, 2000.

     Your Committee believes that the amended measure provides
the necessary safeguards to ensure equitable treatment under the
State's general excise tax law.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 2716, S.D. 1, H.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 2716, S.D. 1, H.D. 1, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE




_____________________________     _______________________________
Rep. ROBERT N. HERKES             Sen. CAROL FUKUNAGA
Co-Chair                          Co-Chair



_____________________________     _______________________________
Rep. DWIGHT Y. TAKAMINE           Sen. ANDREW LEVIN
Co-Chair                          Co-Chair

 
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