CONFERENCE COMMITTEE REP. NO. 110

Honolulu, Hawaii

                 , 2009

RE:    S.B. No. 1461

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1461, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to advance the filing and payment of monthly general excise taxes that are due to an earlier date in the month following accrual to generate a one-time windfall revenue for the State.

     Upon further consideration, your Committee on Conference has amended this measure by:

(1)  Extending the requirement for accelerated monthly filing and payment to quarterly and semi-annual filing and payment of general excise taxes;

(2)  Requiring any person who is required to electronically file a federal return or electronically remit any federal taxes to the federal government, to also electronically file a state return and electronically remit any state taxes under Title 14, Hawaii Revised Statutes, to the Department of Taxation; provided that the Director of Taxation may grant an exemption for good cause;

(3)  With regard to state income tax, requiring any employer who is required to remit any withheld taxes to the federal government on a semi-weekly schedule, to also remit the complete amount of tax withheld to the state Department of Taxation on a semi-weekly schedule; provided the Director of Taxation may grant an exemption for good cause;

(4)  Changing the effective date to upon approval and applying the measure to returns and payments due after May 31, 2009; and

(5)  Making technical conforming amendments.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1461, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1461, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MARCUS R. OSHIRO, Chair

____________________________ DONNA MERCADO KIM, Chair