STAND. COM. REP. NO. 2158

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2308
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred S.B. No. 2308 entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to enable the counties to
submit an itemized claim for reimbursement of general excise
taxes passed on by licensees.

     Testimony in support of this measure was received from the
County of Hawaii Department of Finance, a Council Member of the
Hawaii County Council, and the Council Chair of the Maui County
Council.  Testimony in opposition to this measure was received
from the Department of Budget and Finance.  The Department of
Taxation deferred to the Department of Budget and Finance, and
the Tax Foundation submitted comments.

     Your Committee finds that this measure recognizes the
inequity in having counties pay the passed on general excise tax
on their purchases and places an unnecessary burden on the
limited resources of the counties.

     Your Committee has amended this measure by making a
technical, nonsubstantive change.
   
     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee is in accord with the

 
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                                   STAND. COM. REP. NO. 2158
                                   Page 2


intent and purpose of S.B. No. 2308, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 2308, S.D. 1, and be referred to the Committee
on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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