Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Third Special Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 5 entitled:

begs leave to report as follows:

The purpose of this bill is to reduce the filing burden for taxpayers by increasing the filing thresholds for taxpayers filing withholding, general excise, use, transient accommodations, and rental motor vehicle and tour vehicle surcharge tax returns.

Your Committee notes that S.B. No. 5 is a companion measure to H.B. No. 5 which your Committee reported out earlier in an unamended form, and the contents of these bills are identical. On October 23, 2001, both the Senate and the House held an extensive public hearing on S.B. No. 5 and H.B. No. 5, at which time many citizens and organizations testified on these measures.

The higher filing thresholds established in this bill will allow taxpayers to file less frequently, thereby encouraging filing compliance and increasing the amount of cash that taxpayers have on hand. This bill will provide much-needed fiscal flexibility to many companies associated with the visitor industry as well as other employers statewide.

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. 5 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.