STAND. COM. REP. NO.  172

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 964

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred H.B. No. 964 entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX EXEMPTION FOR CERTAIN SCIENTIFIC CONTRACTS WITH THE UNITED STATES,"

begs leave to report as follows:

The purpose of this measure is to clarify the general excise tax exemption for certain scientific contracts with the United States to conform to the federal Internal Revenue Code.

The Department of Taxation testified in support of this measure.  The Tax Foundation of Hawaii offered comments.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of consistency, clarity, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 964, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 964, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,

____________________________

CLIFT TSUJI, Chair