STAND. COM. REP. NO.  494

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 642

      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 Energy & Environmental Protection, to which was referred H.B. No. 642 entitled:

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

begs leave to report as follows:

The purpose of this measure is to help reduce waste in Hawaii by exempting from the general excise tax an amount up to $500,000 received for, or for the disposal of, wet waste recyclables.

The Department of Taxation and Tax Foundation of Hawaii submitted comments.

     Your Committee has amended this measure by:

     (1)  Making the cap for the general excise tax exemption an unspecified sum;

     (2)  Defining "clean garbage"; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     Should your Committee on Finance deliberate this measure further, your Committee respectfully requests that it consider setting the cap for the general excise tax exemption at $500,000.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 642, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 642, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

CHRIS LEE, Chair