SR88 SD1

WHEREAS, in assessing the effectiveness and efficiency of any tax credit or exemption it is necessary to examine the fiscal impact and rate of usage by taxpayers of the tax credit and exemption; and

WHEREAS, tax credits and exemptions have an important and dramatic impact on the economy for the State of Hawaii; and

WHEREAS, the Department of Taxation has not submitted any, or at least an updated, fiscal impact statement and rate of usage by Hawaii's taxpayers of certain tax credits and exemptions listed under chapters 235, 237, 239, and 244D, Hawaii Revised Statutes; and

WHEREAS, the Legislature would benefit greatly from a report by the Department of Taxation that analyzes the fiscal impact of certain tax credits and exemptions on the economy of the State of Hawaii and its taxpayers; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, that the Department of Taxation is requested to review the fiscal impact and rate of usage by taxpayers of various tax credits and exemptions under chapters 235, 237, 239, and 244D, Hawaii Revised Statutes; and

BE IT FURTHER RESOLVED that the Department of Taxation is requested to report on the fiscal impact and rate of usage by taxpayers of the following tax credits and exemptions listed under chapters 235, 237, 239, and 244D, Hawaii Revised Statutes:

(1) Section 235-9.5 (stock options from qualified high technology businesses excluded from taxation);

(2) Section 237-16.8 (exemption of certain convention, conference, and trade show fees);

(3) Section 237-23 (exemptions, persons exempt, applications for exemption);

(4) Section 237-23.5 (related entities; common paymaster; certain exempt transactions);

(5) Section 237-24 (amounts not taxable);

(6) Section 237-24.3 (additional amounts not taxable);

(7) Section 237-24.5 (additional exemptions);

(8) Section 237-24.7 (additional amounts not taxable);

(9) Section 237-24.75 (additional exemptions);

(10) Section 237-24.9 (aircraft service and maintenance facility);

(11) Section 237-25 (exemptions of sales and gross proceeds of sales to federal government, and credit unions);

(12) Section 237-26 (exemption of certain scientific contracts with the United States);

(13) Section 237-27 (exemption of certain petroleum refiners);

(14) Section 237-27.5 (air pollution control facility);

(15) Section 237-27.6 (solid waste processing, disposal, and electric generating facility; certain amounts exempt);

(16) Section 237-28.1 (exemption of certain shipbuilding and ship repair business);

(17) Section 237-29 (exemptions for certified or approved housing projects) after accounting for the effect of the deduction from gross income for contractors under section 237-13(3)(B);

(18) Section 237-29.5 (exemption for sales of tangible personal property shipped out of the State);

(19) Section 237-29.53 (exemption for contracting or services exported out of State);

(20) Section 237-29.55 (exemption for sale of tangible personal property for resale at wholesale);

(21) Section 237-29.8 (call centers; exemption; engaging in business; definitions);

(22) Section 239-6.5 (tax credit for lifeline telephone service subsidy);

(23) Section 239-12 (call centers; exemption; engaging in business; definitions); and

(24) Section 244D-4.3 (exemption for sales of liquor shipped out of the State); and

BE IT FURTHER RESOLVED that the Department of Taxation is requested to report its findings regarding the fiscal impact and rate of usage by taxpayers of the tax credits and exemptions listed above to the Legislature no later than twenty days prior to the convening of the 2009 Regular Session; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor of the State of Hawaii and the Director of Taxation.

Report Title:

Tax Credits; Tax Exemptions; Reports; Evaluations

THE SENATE	S.R. NO.	88
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII