CONFERENCE COMMITTEE REP. NO. 104-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2587

H.D. 1

S.D. 2

C.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2587, H.D. 1, S.D. 2, 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 address the county surcharge on state tax by:

(1) Extending by three months the period in which a county may adopt a surcharge on state tax, under certain conditions, from March 31, 2018, to June 30, 2018; and

(2) Requiring that, for a county with a population equal to or less than five hundred thousand that adopts a county surcharge on state tax:

(A) No less than sixty percent of the surcharge revenues shall be used for public transportation system purposes; and

(B) No more than two percent of the surcharge revenues may be used on any roadway used by the general public.

Your Committee on Conference has amended this measure by:

(1) Extending the period in which a county may adopt a surcharge on state tax from March 31, 2018, to March 31, 2019;

(2) Specifying that the county surcharge on state tax shall be levied no earlier than:

(A) January 1, 2019, for ordinances adopted after June 30, 2015, but prior to June 30, 2018; or

(B) January 1, 2020, for ordinances adopted on or after June 30, 2018, but prior to March 31, 2019; and

(3) Removing the provisions that specify how certain percentages of the surcharge may be used by a county with a population equal to or less than 500,000 that adopts a surcharge.

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 H.B. No. 2587, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2587, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ LORRAINE R. INOUYE Chair	____________________________ SYLVIA LUKE Chair
____________________________ CLARENCE K. NISHIHARA Co-Chair
____________________________ KAIALI'I KAHELE Co-Chair