STAND. COM. REP. NO. 2071

Honolulu, Hawaii

, 2019

RE: S.B. No. 530

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 530, S.D. 2, H.D. 1, 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 provide certain exemptions to the general excise tax. Specifically, this measure:

(1) Exempts from the general excise tax the sale of mobility enhancing equipment, hearing aids, prescription drugs sold from any source pursuant to a doctor's prescription, durable medical equipment, and prosthetic devices; and

(2) Expands the scope of devices included in the existing definition of prosthetic device for purposes of the general excise tax exemption.

The Disability and Communication Access Board, Councilmember for District 9 of the Hawaii County Council, Aloha State Association of the Deaf, Policy Advisory Board for Elder Affairs, and a few individuals submitted testimony in support of this measure. The Department of Taxation and Tax Foundation of Hawaii submitted comments 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. 530, S.D. 2, 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