CONFERENCE COMMITTEE REP. NO. 102-04
Honolulu, Hawaii
, 2004
RE: S.B. No. 2396
S.D. 1
H.D. 1
C.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2396, S.D. 1, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this measure is to provide a general excise tax exemption for certain organizations from fees received from convention, conference, and trade shows, including fees for exhibit space, advertising, promotion and private contributions.
Your Committee on Conference finds that the Hawaii Convention Center may lose potential convention bookings due to the pyramiding effect of the general excise tax on charitable organizations. Your Committee on Conference further finds that the Hawaii Convention Center plays a vital role in fueling the State's primary economic engine – tourism. While a previous legislative initiative addressed the pyramiding effect of the general excise tax, income derived from exhibition space at the convention center was not incorporated in the measure. This bill eliminates the pyramiding impact on charitable organizations for fees collected for exhibit or display space, while providing that vendor sales through the use of the exhibit or display space remain subject to the general excise tax.
Your Committee on Conference has amended the measure by:
(1) Adding clarifying language to include all nonprofit organizations recognized as tax exempt under section 501(c) of the Internal Revenue Code of 1986, as amended;
(2) Deleting the general excise tax exemption for registration fees, advertising and promotion fees, and private contributions; and
(3) Changing the effective date to July 1, 2004.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2396, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2396, S.D. 1, H.D. 1, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE HOUSE |
ON THE PART OF THE SENATE |
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____________________________ JERRY CHANG, Co-Chair |
____________________________ DONNA MERCADO KIM, Co-Chair |
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____________________________ DWIGHT Y. TAKAMINE, Co-Chair |
____________________________ BRIAN T. TANIGUCHI, Co-Chair |
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