STAND. COM. REP. NO. 1407-00

                                 Honolulu, Hawaii
                                                   , 2000

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




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.
2716, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

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

     (1)  To a sale of goods or services 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

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

     The Hawaii Publishers Association, the Honolulu Publishing
Company, Ltd., PMP Publishing Company, Ltd., Trade Publishing
Company, Hagadone Printing, and Pacific Printing Industries
testified in support of the measure. The Tax Foundation of Hawaii
commented on the bill.

 
 
 
                                 STAND. COM. REP. NO. 1407-00
                                 Page 2

 

     Your Committee has amended this bill by:

     (1)  Changing the effective date to July 1, 2005; and

     (2)  Making technical, nonsubstantive amendments for
          purposes of style and clarity.

     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.
2716, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2716, S.D.
1, H.D. 1.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair