Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Judiciary and Hawaiian Affairs and Intergovernmental Affairs, to which was referred S.C.R. No. 202 entitled:

beg leave to report as follows:

The purpose of this measure is to request the Attorney General to analyze the existing law to identify any impediment to the Department of Taxation's implementation of the collection of the county general excise tax surcharge beginning January 1, 2007. This measure also requests the Department of Taxation to establish a plan to implement the administration and collection of the county surcharge on the general excise tax.

Your Committees received comments on this measure from the Attorney General.

Your Committees find that Act 247, Session Laws of Hawaii 2005 (Act 247), authorized the counties to establish a surcharge on the general excise tax to fund county mass transportation projects. Act 247 also authorized the Department of Transportation to administer and collect the county surcharge and retain ten percent of the surcharge for administrative purposes.

Your Committees further find that the Attorney General, as the State's legal officer, is the appropriate entity to analyze existing law to identify impediments to implementing the Department of Taxation's timely collection of the county surcharge. This analysis will enable the Legislature to take any necessary corrective action before the 2006 Regular Session is concluded.

As affirmed by the records of votes of the members of your Committees on Judiciary and Hawaiian Affairs and Intergovernmental Affairs that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 202 and recommend that it be referred to the Committee on Ways and Means.