STAND. COM. REP. NO. 2623

Honolulu, Hawaii

RE: S.B. No. 2614

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2614, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to extend from March 31, 2018, to March 31, 2019, the deadline for a county to adopt an ordinance to establish a surcharge on the state general excise and use taxes.

The Office of the Mayor of the County of Hawaii submitted written comments in support of the measure.

The Department of Taxation submitted written comments on the measure.

Your Committee notes that the County of Kauai and the City and County of Honolulu have already adopted a surcharge on the general excise and use taxes. Your Committee recognizes that this measure would provide the County of Hawaii and the County of Maui with an extension of time to adopt the surcharge.

Accordingly, your Committee has amended this measure to establish that:

(1) For a county that has adopted an ordinance before March 31, 2018, the Director of Taxation shall levy, assess, collect, and otherwise administer the county surcharge on state tax starting on January 1, 2019; and

(2) For a county that has adopted an ordinance before March 31, 2019, the Director of Taxation shall levy, assess, collect, and otherwise administer the county surcharge on state tax starting on January 1, 2020.

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. 2614, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2614, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair