STAND. COM. REP. NO. 2344

Honolulu, Hawaii

RE:    S.B. No. 2402

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2402 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to clarify the law with respect to comfort letters issued by the Department of Taxation.

     Your Committee received comments on the measure from the Tax Foundation of Hawaii.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that this measure will render the language in the Department of Taxation's comfort ruling provisions grammatically proper.

     Upon further consideration, your Committee has amended this measure by making it applicable to taxable years beginning after December 31, 2100, to facilitate further discussion.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2402, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2402, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DONNA MERCADO KIM, Chair