Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 2130 entitled:

begs leave to report as follows:

The purpose of this bill is to accelerate the depyramiding schedule for the general excise tax as follows:

(2) In calendar year 2003 and thereafter, the tax is reduced

Testimony in support of this measure was received from the Chamber of Commerce of Hawaii. The Department of Budget and Finance and the Tax Foundation of Hawaii offered comments. The Department of Taxation and the Hawaii State Teachers Association opposed this bill.

Upon further consideration, your Committee has amended this measure by changing the effective date to apply to taxable years beginning after December 31, 2001.

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. 2130, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2130, H.D. 1, and be referred to the Committee on Finance.