STAND. COM. REP. NO. 2107
RE: S.B. No. 2928
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Eighth State Legislature
Regular Session of 2016
State of Hawaii
Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2928 entitled:
"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX REPORTING FOR SPECIAL EVENTS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Require operators of special events to file reports with the Department of Taxation that provide information about the vendors participating in special events; and
(2) Permit the Department of Taxation to issue citations to special event operators for failure to file a report.
Your Committee received testimony in support of this measure from the Department of Taxation. Your Committee received testimony in opposition of this measure from one individual. Your Committee received comments on this measure from the Tax Foundation of Hawaii and Chamber of Commerce Hawaii.
Your Committee finds that special events present a unique challenge to tax law enforcement, as these events involve primarily cash-based businesses that may or may not be properly licensed. This measure is intended to assist the Department of Taxation in finding businesses not currently in compliance with their general excise tax obligations and bringing those businesses into compliance.
Your Committee does have some concerns over the creation of an additional paper form and whether the Department of Taxation will be able to appropriately proceed with enforcement once the Department begins to collect all the information proposed by this measure. Your Committee believes an online form that would notify the Department of Taxation and permit the reporting of required information may be a more efficient starting point for the Department.
Accordingly, your Committee has amended this measure by:
(1) Requiring the Department of Taxation to develop an online form to be published on the Department's website and filled out by special event operators that shall include relevant information about vendors at all special events for which a person is a special event operator; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2928, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2928, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,
ROSALYN H. BAKER, Chair