Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 842, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to clarify the applicability of withholding requirements under the Hawaii Real Property Tax Act to nonresident, single-member limited liability companies that have elected not to be taxed as corporations.

The Department of Taxation supported this bill. The Tax Foundation of Hawaii provided comments.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 842, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.