STAND. COM. REP. NO. 982

Honolulu, Hawaii

, 2021

RE: S.B. No. 594

S.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred S.B. No. 594, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX,"

begs leave to report as follows:

The purpose of this measure is to authorize the Director of Taxation to exempt a taxpayer whose annual general excise tax liability does not exceed $100 from monthly, quarterly, or semiannual general excise tax filing requirements, under certain conditions.

Your Committee received testimony in support of this measure from one individual. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that existing law requires semiannual returns for taxpayers reporting $2,000 or less in annual general excise tax liability, quarterly returns for taxpayers reporting more than $2,000 and up to $4,000, and monthly returns for taxpayers reporting more than $4,000. This measure eases the burden for certain taxpayers who must file periodic returns and allows for more effective administration of the State's tax laws by the Department of Taxation.

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 S.B. No. 594, S.D. 1, and recommends that it pass Second Reading 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