STAND. COM. REP. NO.  1944-18


Honolulu, Hawaii

                , 2018


RE:   S.B. No. 2514

      S.D. 1

      H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Finance, to which was referred S.B. No. 2514, S.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to provide that a person is engaging in business in the State, whether or not the person has a physical presence in the State, for purposes of the general excise tax law if in the current or immediately preceding calendar year the person has $100,000 or more in gross income or two hundred or more separate transactions from the sale of tangible personal property delivered in the State, services used or consumed in the State, or intangible property used in the State.  


     The Department of Taxation and Retail Merchants of Hawaii supported this measure.  The Department of the Attorney General and Tax Foundation of Hawaii provided comments.


     Your Committee has amended this measure by changing its effective date to July 1, 2030, to encourage further discussion.


     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2514, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2514, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.


Respectfully submitted on behalf of the members of the Committee on Finance,