STAND. COM. REP. NO. 927

Honolulu, Hawaii

RE: S.B. No. 1158

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1158, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL SUPPLIES,"

begs leave to report as follows:

The purpose and intent of this measure is to establish an annual general excise tax holiday on the sale of school supplies in the State prior to the start of an upcoming school year.

Your Committee received written comments in support of this measure from the Hawaii State Teachers Association.

Your Committee received written comments on this measure from the Department of Education and Department of Taxation.

Your Committee finds that the cost of school supplies for families, especially when multiplied for more than one child, can be very expensive. Your Committee believes that this measure would provide relief to parents and teachers as they buy school supplies needed to be ready for the school year.

Your Committee has amended this measure by:

(1) Specifying that the tax holiday shall occur on the weekend of the last Friday in July;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) Making technical nonsubstantive amendments for purposes of consistency, clarity, and style.

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. 1158, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1158, 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