STAND. COM. REP. NO. 198
Honolulu, Hawaii
, 2009
RE: H.B. No. 1585
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 Tourism, Culture, & International Affairs, to which was referred H.B. No. 1585 entitled:
"A BILL FOR AN ACT RELATING TO THE TAXATION OF ONLINE TRAVEL COMPANIES,"
begs leave to report as follows:
The purpose of this bill is to assess the Transient Accommodations Tax and General Excise Tax upon online travel companies that facilitate transient accommodations over the Internet.
Orbitz, Expedia, and Sabre opposed this bill. The Department of Taxation and a concerned individual offered comments.
Several members of your Committee raised concerns related to ongoing litigation and the United States Supreme Court case, Quill Corp v. North Dakota (1992), which requires a nexus between the taxpayer and a state for purposes of tax collection. Another member noted that your Committee on Economic Revitalization, Business, and Military Affairs was referred bills relating to nexus and could appropriately take up the issue of nexus with regard to this measure.
Accordingly, your Committee has amended this bill by:
(1) Changing the effective date to July 1, 2112, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Tourism, Culture, & International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1585, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1585, H.D. 1, and be referred to the Committee on Economic Revitalization, Business, & Military Affairs.
Respectfully submitted on behalf of the members of the Committee on Tourism, Culture, & International Affairs,
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____________________________ JOEY MANAHAN, Chair |
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