STAND. COM. REP. NO. 1643-26

Honolulu, Hawaii

, 2026

RE: H.C.R. No. 66

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.C.R. No. 66 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO CONDUCT A STUDY ON THE EFFECT OF STATE AND COUNTY TAX STRUCTURES AND PROGRAMS ON THE LONG-TERM ECONOMIC GROWTH OF THE STATE OF HAWAII,"

begs leave to report as follows:

The purpose of this measure is to request the Department of Business, Economic Development, and Tourism to conduct a comprehensive study of Hawaii's state and county tax structures to determine how new and existing state and county programs can be most equitably and efficiently paid for in order to foster the long-term growth of the State's economy.

Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committee finds that the state and county tax structures are factors in business investment decisions and often affect the movement of individuals both within and to and from the State. Your Committee further finds that Hawaii recently ranked sixth-highest in the country for state and local taxes per capita and was ranked forty-second for business climate by the Tax Foundation. Your Committee believes that there is a need for the State to consider the effectiveness of its tax structures and believes this measure helps address this need by requesting the Department of Business, Economic Development, and Tourism to conduct a study on tax structure and make related policy recommendations.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 66 and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

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GREGGOR ILAGAN, Chair