STAND. COM. REP. NO. 365
RE: S.B. No. 1500
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fourth State Legislature
Regular Session of 2007
State of Hawaii
Your Committee on Economic Development and Taxation, to which was referred S.B. No. 1500, S.D. 1, entitled:
"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR DEPARTMENT OF TAXATION COUNTY SURCHARGE IMPLEMENTATION COSTS,"
begs leave to report as follows:
The purpose of this measure is to make an emergency appropriation of $5,000,000, for fiscal year 2006-2007 to the Department of Taxation to reimburse it for costs incurred in implementing and administering the county surcharge on the state general excise tax, including the costs of the computer vendor.
Testimony in support of this measure was received from the Department of Taxation (Department) and the City and County of Honolulu Department of Budget and Fiscal Services.
Your Committee notes that in information presented at the legislative hearing on February 8, 2007, the Department of Taxation listed total first year operational costs of $1,708,518, and total vendor costs of $2,791,482, for total costs of $4,500,000. In addition, the Department stated that future contingencies are materializing, which led to the request to increase the appropriation to $5,000,000.
Your Committee finds, however, that the Department has not provided details on the additional $500,000 request.
It is the intent of your Committee to reserve a decision on the final amount of the appropriation until more detailed information is received from the Department of Taxation.
Your Committee has amended this measure accordingly, by:
(1) Decreasing the appropriation to $4,500,000, the amount in the original measure; and
(2) Adding a new section to the bill stating that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2007‑2008 to be exceeded by $ , or per cent; and the reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the needs provided for by this Act.
As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1500, S.D. 1, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.B. No. 1500, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Taxation,
CAROL FUKUNAGA, Chair