STAND. COM. REP. NO. 3027
Honolulu, Hawaii
RE: H.B. No. 2416
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 2416, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TAX ON INTANGIBLE PROPERTY,"
begs leave to report as follows:
The purpose and intent of this measure is to clarify how the use of intangible property is treated under the State's general excise and use tax laws.
Specifically, the measure clarifies that:
(1) Intangible property used outside the State shall be exempted from the general excise tax; and
(2) Intangible property acquired from an unlicensed seller and used in the State is subject to the use tax.
Your Committee received testimony in support of this measure from the Department of Taxation.
Your Committee received comments on this measure from the Tax Foundation of Hawaii.
Your Committee finds that this measure will clarify the application of the state general excise and use taxes to intangible property.
Your Committee has amended this measure by clarifying that the use tax does not apply to stocks and bonds.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2416, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2416, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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