STAND. COM. REP. NO. 1437

Honolulu, Hawaii

RE:    H.B. No. 92

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 92, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"

begs leave to report as follows:

     The purpose of this measure is to promote the fair application of the general excise tax by allowing securities professionals to pay the general excise tax only on their respective share of commissions divided among a number of persons.

     Your Committee received written testimony in support of this measure from the Department of Taxation, the National Association of Insurance and Financial Advisors, Brookstreet Securities Corporation, Linsco/Private Ledger Corp., and one individual.  The Tax Foundation of Hawaii submitted written comments on this measure.

     Your Committee finds that where two or more securities professionals share compensation, each should be required to pay taxes only on their respective portions, rather than on the entire compensation.  This measure would correct an inequity in current Hawaii tax law.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 92, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair