STAND. COM. REP. NO.532
Honolulu, Hawaii
, 2001
RE: H.B. No. 426
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 426 entitled:
"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"
begs leave to report as follows:
The purpose of this bill is to accelerate the timetable for pyramiding relief for the sale of services.
The Chamber of Commerce of Hawaii, Retail Merchants of Hawaii, and Hawaii Attractions Association testified in support of this bill. The Department of Taxation opposed this bill. The Department of Budget and Finance, Tax Foundation of Hawaii, and the State Director of the National Federation of Independent submitted comments.
Your Committee has amended this bill by deleting its provisions and adding new provisions that:
(1) Exempt food for home consumption for senior citizens from the 4 percent general excise tax on groceries;
(2) Increase the low income tax credit;
(3) Establish a general excise tax on luxury items equal to five per cent of the sales price; and
(4) Make technical, nonsubstantive amendments for the purpose of clarity.
As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 426, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 426, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,
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____________________________ LEI AHU ISA, Chair |
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