HOUSE OF REPRESENTATIVES

H.C.R. NO.

101

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

REQUESTING THE DEPARTMENTS OF TAXATION AND BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO CONDUCT A REVIEW AND COST BENEFIT ANALYSIS OF ALL CURRENT TAX INCENTIVES UNDER TITLE 14, HAWAII REVISED STATUTES.

 

WHEREAS, the State has seen the creation and implementation of a plethora of tax incentives over the past few decades; and

WHEREAS, the tax incentives have taken the form of tax credits, tax exemptions, tax deductions, or some other type of tax assistance under title 14, Hawaii Revised Statutes; and

WHEREAS, these tax incentives were created for a variety of reasons, including stimulating economic growth, assisting local businesses, creating new jobs, or some other reason that benefits the State; and

WHEREAS, some of these tax incentives, however, have been in effect for decades with no apparent logical justification or little or no benefit to the State; and

WHEREAS, a review of all tax incentives is essential to providing the most cost-effective and efficient use of taxpayer dollars; and

WHEREAS, the State has never conducted a systematic review of current tax incentives to ensure that the justification for providing the incentive still applies; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2004, the Senate concurring, that the Department of Taxation is requested to compile data on all current tax incentives provided under title 14, Hawaii Revised Statutes, that benefit a specific person, group, or organization and does not apply to the general public; and

BE IT FURTHER RESOLVED that the Department of Taxation is requested to provide the data to the Department of Business, Economic Development, and Tourism, which is requested to conduct a review and cost benefit analysis pursuant to this Concurrent Resolution of all current tax incentives, with the assistance of the Department of Taxation, Enterprise Honolulu, and the University of Hawaii Economic Research Organization; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism is requested to include in the review and cost benefit analysis a detailed justification for each of these tax incentives; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism is requested to report its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2005; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism, the Director of Taxation, the President of Enterprise Honolulu, and the Executive Director of the University of Hawaii Economic Research Organization.

 

Report Title:

Requests the Department of Taxation to conduct a review of all current tax incentives under title 14, HRS; DBEDT is requested to conduct a review and cost benefit analysis of all current tax incentives