STAND. COM. REP. NO.  1607

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 1461

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1461, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Authorize the Director of Taxation to require any person who is required to electronically file a federal return and remit federal taxes to the federal government, to electronically file a state return and remit state taxes to the Department of Taxation; and

     (2)  Accelerate the filing and payment due dates for general excise, transient accommodations, fuel, cigarette and tobacco product, and rental motor vehicle and tour vehicle surcharge taxes.

     The Department of Taxation supported this bill.  Retail Merchants of Hawaii, Hidano Construction, Inc., and a concerned individual opposed this bill.  The Tax Foundation of Hawaii offered comments.

     Your Committee has amended this bill by replacing its contents with the substance of H.B. No. 1735, H.D. 1.  As amended, this bill advances the filing and payment of monthly general excise taxes due to an earlier date in the following month to generate a one-time windfall revenue for the State.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1461, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1461, S.D. 2, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair