HOUSE OF REPRESENTATIVES	H.B. NO.	2615
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. (a) The tax review commission shall conduct a feasibility study to determine whether general excise and use tax laws should be replaced with a sales tax.

(b) The feasibility study shall:

(1) Review sales tax applications in other jurisdictions;

(2) Redefine the appropriate tax base;

(3) Determine how to regulate online sales transactions;

(4) Examine the implications of differing tax rates based on item type, including examining higher tax rates for luxury goods compared to necessities;

(5) Review revenue and equity implications;

(6) Review the economic impact of a transition to a sales tax;

(7) Recommend an appropriate sales tax rate;

(8) Specify administrative impacts related to implementation and compliance; and

(9) Include any other information the commission deems relevant.

(c) The tax review commission shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature at the completion of the study.

SECTION 2. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Tax Review Commission

Description:

Requires the Tax Review Commission to conduct a feasibility study on whether the general excise and use tax laws should be replaced with a sales tax.

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