STAND. COM. REP. NO. 1210-08
Honolulu, Hawaii
, 2008
RE: S.B. No. 591
S.D. 3
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Fourth State Legislature
Regular Session of 2008
State of Hawaii
Sir:
Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 591, S.D. 3, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose of this bill is to make the Capital Goods Excise Tax Credit law easier to comply with by updating and restating its provisions.
The Department of Taxation (DOTAX) and a concerned individual supported the measure. The Tax Foundation of Hawaii offered comments.
Your Committee finds that the current Capital Goods Excise Tax Credit is difficult to administer as it is antiquated and makes reference to repealed or substantively amended chapters of the United States Internal Revenue Code. This measure will assist taxpayers and tax practitioners by restating the credit in accordance with the current Internal Revenue Code.
However, your Committee also notes that the bill as written maintains the credit at four percent of the cost of eligible capital goods property, whereas the general excise tax rate in Honolulu is now 4.5 percent. The intent and purpose of the credit is to refund the general excise tax on capital goods to reduce the burden on goods necessary for business. Your Committee therefore humbly requests that the Committee on Finance to which this bill is next referred, consider adopting language updating the rate of the credit for Honolulu.
Your Committee has amended this bill by changing its effective date to July 1, 2034, to encourage further discussion.
As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 591, S.D. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 591, S.D. 3, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,
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____________________________ KYLE T. YAMASHITA, Chair |
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