STAND. COM. REP. NO. 2549

Honolulu, Hawaii

RE:    S.B. No. 3109

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 3109 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to change the date of remitting for general excise tax payments from the twentieth day to the last day of the calendar month following the month in which the taxes accrue.

     The Hawaii Business League and the Chamber of Commerce of Hawaii provided testimony in support of this measure.  The Department of Taxation provided testimony in opposition to this measure.  The Tax Foundation of Hawaii commented on the measure.

     Your Committee finds that changing the filing date for general excise taxes from the twentieth day to the last day of the applicable calendar month will provide taxpayers with sufficient time to prepare the necessary paperwork to timely remit their general excise tax payments, which will ultimately increase the number of timely filings.

     Your Committee has amended this measure by changing the effective date to January 1, 2050, for taxable years beginning after December 31, 2016, to facilitate further discussion on the measure.

     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. 3109, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3109, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair