STAND. COM. REP. NO. 1371

Honolulu, Hawaii

RE:    S.C.R. No. 115

       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 Economic Development and Taxation, to which was referred S.C.R. No. 115 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF TAXATION TO CODIFY THE LANGUAGE OF THE REFERENCES TO INTERNAL REVENUE CODE PROVISIONS IN SECTION 235-110.7, HAWAII REVISED STATUTES,"

begs leave to report as follows:

     The purpose of this measure is to enable both the Department of Taxation and tax practitioners to correctly assist taxpayers, by codifying outdated provisions of the Internal Revenue Code in section 235-110.7, Hawaii Revised Statutes.

     The Department of Taxation (Department) and one individual submitted testimony in support of this measure.

     Your Committee finds that this measure will address a recommendation made in Part II, Section K, Item 1, of the Report of the 2001-2003 Tax Review Commission:  Overhaul and Update the Capital Goods Excise Tax Credit.

     Your Committee has heard that the Department may request that the proposed legislation be included in the Department's bill package for 2008, but that the Governor makes the final decision on inclusion.  Therefore, your Committee has amended this measure to request that the Department submit proposed legislation directly to the Legislature for introduction in the Regular Session of 2008.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 115, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 115, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Taxation,

____________________________

CAROL FUKUNAGA, Chair