STAND. COM. REP. NO.  810

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 966

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 966, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SECTION 237-23, HAWAII REVISED STATUTES,"

begs leave to report as follows:

The purpose of this measure is to correct the inadvertent repeal of the words "as such" from section 237-23(b), Hawaii Revised Statutes, which provides various general excise tax exemptions, and to apply the correction retroactively from the taxable years beginning after December 31, 2011.  This correction ensures that General Excise Tax exemptions apply as intended to the not-for-profit activities of certain tax-exempt organizations.

The Department of Taxation provided testimony in support of this measure.  The Tax Foundation of Hawaii provided comments.   

     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 H.B. No. 966, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair