Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 840, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to clarify the state withholding tax provisions for employers with an annual withholding tax liability that exceeds $40,000.

The Department of Taxation testified in support of this bill. The Tax Foundation of Hawaii provided comments.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 840, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.