Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred S.B. No. 1397, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to authorize the State's participation in multistate discussions relating to the Streamlined Sales Tax Project (Project), which is a nationwide effort being undertaken among the various states.

The underlying purpose of the Project is to simplify sales and use tax administration to reduce the burden of tax compliance for all sellers and for all types of commerce. The goals of the Project include:

(1) Establishing a single state sales tax rate;

The Department of Taxation, Retail Merchants of Hawaii, and Legislative Information Services of Hawaii supported this bill. The Tax Foundation of Hawaii submitted comments.

Your Committee has amended this bill by making a technical, nonsubstantive amendment for purposes of style and 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 S.B. No. 1397, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1397, S.D. 1, H.D. 1, and be referred to the Committee on Finance.