Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 718 entitled:

begs leave to report as follows:

The purpose of this bill is to:

1. Simplify the application process for nonprofit organizations seeking exemption from the general excise tax (GET); and
2. Reduce the tax filing burden for nonprofit organizations by repealing the two-month limitation for registration or filing of a GET exemption.

The Department of Taxation and the Aloha Society of Association Executives testified in support of this bill. The Tax Foundation of Hawaii commented on the measure.

Your Committee has amended this bill based on the recommendation of the Department of Taxation to clarify the types of organizations that qualify for minimal registration requirements.

Other technical, nonsubstantive amendments were made to conform to standard drafting conventions.

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 H.B. No. 718, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 718, H.D. 1, and be placed on the calendar for Third Reading.