STAND. COM. REP. NO. 1159

Honolulu, Hawaii

, 2019

RE: H.B. No. 844

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 844 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to establish a task force in the Department of Taxation to discuss the need to rebalance and repurpose the tax programs created by the general excise tax, income tax, and transient accommodations tax laws.

The O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i supported this measure. The Department of Budget and Finance, Department of Taxation, and Tax Foundation of Hawaii provided comments.

Your Committee has amended this measure by:

(1) Specifying that the task force shall study the tax programs under property tax laws, rather than transient accommodations tax laws;

(2) Specifying that task force members may be the designees of the named members; and

(3) Changing the effective date to July 1, 2030, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 844, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 844, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair