STAND. COM. REP. NO. 2589

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 800
                                        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. 800, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is exempt from the excise tax
amounts received by a wastewater reclamation facility from a
county for processing and cleaning wastewater and returning the
water to the county.

     The exemption provided by this measure is intended to
promote the wastewater reclamation industry by exempting excise
taxes paid to a vendor facility by a county.  Counties pay excise
taxes to vendors.  By exempting a vendor from the excise tax for
sales to a county, the vendor and the county derive a benefit.
In addition, your Committee finds that this measure is in the
best interests of sanitation and conservation.

     Your Committee has amended this measure to change the
effective date to July 1, 2010, in the interest of continuing
discussions on this matter.

     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. 800, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 800,
S.D. 2.

 
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                                   STAND. COM. REP. NO. 2589
                                   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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