STAND. COM. REP. NO.450-02
RE: H.B. No. 2569
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Finance, to which was referred H.B. No. 2569 entitled:
"A BILL FOR AN ACT RELATING TO THE CONFORMITY OF THE STATE TAX LAWS TO THE UNITED STATES CONSTITUTION,"
begs leave to report as follows:
The purpose of this bill is to provide relief from taxes paid to another state by allowing taxpayers to claim a credit for taxes imposed on any property, service, or contracting imported into the State that has not been accommodated by the use tax credit.
The Department of Taxation supported this measure. The Tax Foundation of Hawaii commented on this measure.
Your Committee has amended this bill by:
(1) Substituting the word "credit" with the word "offset" to avoid any confusion with incentive-like credits;
(2) Providing that the Director of Taxation has the flexibility to implement the offset by prescribing tax forms and instructions that require tax reporting and payment by deduction, allocation, or any other method to determine tax liability to the extent necessary to comply with the foregoing; and
(3) Making technical, nonsubstantive amendments for purposes of clarity 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. 2569, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2569, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
DWIGHT Y. TAKAMINE, Chair