STAND. COM. REP. NO.2846
RE: H.B. No. 2571
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Health and Human Services, to which was referred H.B. No. 2571 entitled:
"A BILL FOR AN ACT RELATING TO TAXATION OF PERSONS WITH IMPAIRED SIGHT OR HEARING OR WHO ARE TOTALLY DISABLED THAT ARE ENGAGED IN BUSINESS,"
begs leave to report as follows:
The purpose of this measure is to provide the same general excise tax benefits to persons with impaired sight, hearing, or who are totally disabled regardless of the entity in which they choose to do business.
Your Committee received testimony in support of this measure from the Department of Taxation.
Your Committee finds that certain general excise tax benefits are available to deaf, blind, and totally disabled persons. Your Committee notes, however, that these provisions may not be applicable depending upon the entity in which impaired persons choose to do business. Currently, section 237-17, Hawaii Revised Statutes, provides a one-half per cent general excise tax rate for individuals who are blind, deaf, or totally disabled, or corporations all of whose outstanding shares are owned by individuals who are blind, deaf, or totally disabled. Similarly, section 237-24(13), Hawaii Revised Statutes, exempts from the general excise tax $2,000 a year of gross income received by any blind, deaf, or totally disabled person engaging in business. Your Committee agrees that the law should treat these individuals equally by recognizing the various other entities that may be formed to do business, such as partnerships of all types and limited liability companies.
Your Committee has amended this measure by:
(1) Conforming the new language within section 237-24, Hawaii Revised Statutes, (HRS) to reflect the new language in section 237-17, HRS; and
(2) Clarifying the effective date.
As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2571, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2571, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Health and Human Services,
DAVID MATSUURA, Chair