STAND.
COM. REP. NO. 1842-22
Honolulu, Hawaii
, 2022
RE: S.B. No. 2475
S.D. 2
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 Finance, to which was referred S.B. No. 2475, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose of this measure is to clarify that:
(1) Receipts for transportation or storage of cargo are not exempt under the general excise tax law; and
(2) Amounts received or accrued for wharfage and demurrage services are exempt under the general excise tax law.
Your Committee finds that Hawaii's general excise tax is intended to be a comprehensive tax that covers nearly all levels of transactions, not just at the point of sale. However, it has been the policy of the legislature that certain transactions should not be taxed. As a result, certain exemptions are recognized under the general excise tax law.
Your Committee has amended this measure by:
(1) Specifically exempting stevedoring services and related services from the general excise tax;
(2) Deleting provisions that stated receipts for transportation or storage of cargo are not exempt under the general excise tax law;
(3) Making it effective upon its approval; and
(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
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 S.B. No. 2475, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2475, S.D. 2, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ SYLVIA LUKE, Chair |
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