STAND.
COM. REP. NO. 350-22
Honolulu, Hawaii
, 2022
RE: H.B. No. 1491
H.D. 1
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirty-First State Legislature
Regular Session of 2022
State of Hawaii
Sir:
Your Committee on Economic Development, to which was referred H.B. No. 1491 entitled:
"A BILL FOR AN ACT RELATING TO THE CIGARETTE TAX AND TOBACCO TAX LAW,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Repeal the deferred payment purchase option for cigarette tax stamps; and
(2) Require licensees to pay for cigarette tax stamps at the time of purchase using cash, certified check, or bank transfer.
Your Committee finds that existing law authorizes deferred payment purchases for cigarette stamp fees. However, your Committee finds that deferred payment purchase of cigarette stamps is no longer necessary and that having the taxpayer pay upon purchase is the most efficient way to administer the cigarette stamps program.
Your Committee notes the testimony of the Department of Taxation before your Committee, which requested that statutory language regarding the Department's authority to modify the cigarette stamp fee be maintained.
Accordingly, your Committee has amended this measure by reinstating language that provides the Department of Taxation with the authority to modify the cigarette stamp fee to reflect actual costs incurred by the State in providing the stamps.
As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1491, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1491, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Economic Development,
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____________________________ SEAN QUINLAN, Chair |
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