STAND. COM. REP. NO.2163
Honolulu, Hawaii
, 2002
RE: S.B. No. 2414
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Economic Development and Technology, to which was referred S.B. No. 2414 entitled:
"A BILL FOR AN ACT RELATING TO TAXATION TO STIMULATE THE ECONOMY,"
begs leave to report as follows:
The purpose of this measure is to increase income tax deductions for business meals and entertainment expenses from fifty per cent to one hundred per cent, and to allow business entertainment deductions for club dues.
Your Committee received testimony in support of this measure from the Retail Merchants of Hawaii, Hawaii Hotel Association, the Hawaii Business League, and Hawaii Restaurant Association, and comments on this measure from Tax Foundation of Hawaii. Your Committee received testimony opposing this measure from the Department of Taxation.
Your Committee finds that this measure puts Hawaii at the forefront in encouraging business tourism. These deductions should have a dramatic and positive impact on small retailers and other businesses that do not have the facilities to host meetings and/or entertain clients on their premises, and must bear the additional cost of restaurants and outside meeting rooms.
As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2414 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,
____________________________ ROD TAM, Chair |
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