CONFERENCE COMMITTEE REP. NO. 138

Honolulu, Hawaii

                 , 2011

RE:    S.B. No. 754

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 754, S.D. 1, 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 temporarily suspend the general excise and use tax exemptions for certain amounts received by certain persons and require the payment of both taxes at a rate of four per cent.

     This measure also provides that the existing general excise tax exemption for nonprofit organizations, with the exception of the value or gross income received by nonprofit organizations from certain conventions, conferences, trade shows, or display spaces, is excluded from the temporary tax suspension.

     Your Committee on Conference has amended this measure by including language to provide that the temporary suspension of tax exemptions shall not apply to gross income or gross proceeds from stevedoring services and related services furnished to a company by its wholly owned subsidiary.

     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. 754, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 754, S.D. 1, 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

____________________________ DAVID Y. IGE, Chair