CONFERENCE COMMITTEE REP. NO. 71-18

 

Honolulu, Hawaii

                 , 2018

 

RE:    H.B. No. 2416

       H.D. 1

       S.D. 1

       C.D. 1

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sirs:

 

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2416, H.D. 1, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAX ON INTANGIBLE PROPERTY,"

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to clarify how intangible property is treated under the State's general excise and use tax laws by clarifying that:

 

     (1)  Intangible property used outside the State shall be exempt from the general excise tax; and

 

     (2)  Intangible property acquired from an unlicensed seller and used in the State is subject to the use tax at a rate of four percent of the value of the property.

 

     Your Committee on Conference has amended this measure by making it effective upon its approval and applicable to taxable years beginning after December 31, 2018.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2416, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2416, H.D. 1, S.D. 1, C.D. 1.

 

Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE SENATE

 

ON THE PART OF THE HOUSE

 

____________________________

GILBERT S.C. KEITH-AGARAN

Chair

 

____________________________

SYLVIA LUKE

Chair

____________________________

J. KALANI ENGLISH

Co-Chair

 

 

____________________________

GIL RIVIERE

Co-Chair