CONFERENCE COMMITTEE REP. NO. 143-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2514

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

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. 2514, 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 provide that, for the purpose of the general excise tax law, a person is engaging in business in the State if, in the current or immediately preceding calendar year, the person has either:

(1) $100,000 or more in gross income or gross proceeds from the sale of tangible personal property delivered in the State, services used or consumed in the State, or intangible property used in the State; or

(2) Two hundred or more separate sales transactions thereof.

Your Committee on Conference finds that this measure will clarify the circumstances under which a person will be considered to be engaged in business in the State and therefore subject to the general excise tax. Your Committee on Conference further finds that this measure will ensure fair competition among all businesses, regardless of location, that sell goods and services in the State.

Your Committee on Conference has amended this measure by changing its effective date from July 1, 2030, to July 1, 2018.

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. 2514, 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. 2514, 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

____________________________ SYLVIA LUKE Chair	____________________________ GILBERT S.C. KEITH-AGARAN Chair
	____________________________ BRICKWOOD GALUTERIA Co-Chair