STAND. COM. REP. NO. 782

Honolulu, Hawaii

RE: S.B. No. 787

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 787, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to promote transparency and accuracy in state budgeting.

Specifically, the measure:

(1) Requires any revenue estimate provided by the Department of Taxation to the Legislature or to any executive or administrative office of the State to be accompanied by a description of the methodology and assumptions made in providing the estimate; and

(2) Provides that the revenue estimate and description are subject to public disclosure, inspection, and copying.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that the information required by this measure will increase transparency and accuracy in state budgeting. Your Committee further finds that this information will help the Legislature make informed decisions relating to budgeting and appropriations.

Your Committee has amended this measure by:

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

(2) Making technical nonsubstantive amendments for purposes of 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. 787, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 787, 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