STAND. COM. REP. NO. 714

Honolulu, Hawaii

RE:    S.B. No. 1007

       S.D. 2

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 S.B. No. 1007, 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 treat licensed securities professionals who work on commission basis the same way as licensed insurance and real estate professionals under the general excise tax laws.

     SunAmerica Securities, Inc., submitted written comments in support of this measure.  The Tax Foundation of Hawaii submitted written comments.

     Your Committee finds that licensed investment brokers and their licensed agents should be allowed to each pay the general excise tax on the portion of the commission that each receives instead of requiring each to pay on the entire commission amount.

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to further discussion.

     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 S.B. No. 1007, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1007, S.D. 2.

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

____________________________

ROSALYN H. BAKER, Chair