STAND.
COM. REP. NO. 1180
Honolulu, Hawaii
, 2023
RE: H.B. No. 1362
H.D. 2
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirty-Second State Legislature
Regular Session of 2023
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 1362, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PASS-THROUGH ENTITY TAXATION,"
begs leave to report as follows:
Your Committee has amended this measure by:
(1) Clarifying that an election of a partnership or S corporation to be taxed as an electing pass-through entity in a tax year shall be irrevocable for that tax year and shall be binding on all partners, shareholders, and members of the electing pass-through entity;
(2) Specifying that distributive shares and guaranteed payments of members who are corporations are not included in determining the tax imposed on an electing pass-through entity under this measure; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
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. 1362, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1362, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ KYLE T. YAMASHITA, Chair |
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