STAND. COM. REP. NO.3290
Honolulu, Hawaii
, 2002
RE: H.B. No. 1684
H.D. 1
S.D. 2
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 1684, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO STATE AND LOCAL TAXATION OF MOBILE TELECOMMUNICATIONS SERVICES,"
begs leave to report as follows:
The purpose of this measure is to conform Hawaii laws to the federal Mobile Telecommunications Sourcing Act which mandates a method of sourcing the income received by wireless telecommunications companies and clarifies state taxing authority of the wireless telecommunications industry.
Your Committee finds that recent technological advances have provided residents with conveniences unimaginable a decade ago. The wireless telecommunications industry, in particular, is evolving rapidly, creating new and innovative services for consumers. The creation of these new services has required government to reassess the manner, method, and means of regulation. One issue that this measure addresses is the proper and equitable administration of taxes for wireless telecommunications services that are primarily used in this State but may originate and terminate in other states.
Your Committee has amended this measure by:
(1) Revising the purpose section to further express and clarify the basis and intent of this measure;
(2) Specifying that sections 239-A to 239-E in this measure apply to home service providers as defined in section 239-B;
(3) Deleting the provisions that establish customers' procedures and remedies for correcting erroneously imposed taxes, charges, or fees included on a billing;
(4) Providing that a home service provider shall be responsible for obtaining and maintaining the customer's place of primary use and prescribing how the place of primary use may be determined;
(5) Codifying the provisions that provide that sections 239-A to 239-D are nonseverable against any final federal court judgment that substantially limit or impair their provisions;
(6) Recasting the general excise and public service company tax provisions to clarify their imposition on the applicable gross income generated by interstate or foreign mobile telecommunications services with a place of primary use in this State regardless of the state in which the services originate and terminate;
(7) Deleting the provisions relating to the imposition of tax on imported services; and
(8) Making technical, nonsubstantive changes to reflect proper and preferred drafting style and provide further clarity.
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 H.B. No. 1684, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1684, H.D. 1, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ BRIAN T. TANIGUCHI, Chair |
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