STAND. COM. REP. NO.  1516-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2896

      S.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2896, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX WHOLESALE RATE IMPOSED UPON SALE OF TANGIBLE PERSONAL PROPERTY,"

begs leave to report as follows:

The purpose of this measure is to clarify that wholesale sales of tangible personal property are subject to a general excise tax rate of one-half of one per cent of gross sales proceeds.

The Department of Taxation supported this measure.  Tax Foundation of Hawaii commented on this measure.  

     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. 2896, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair