STAND. COM. REP. NO. 277
RE: H.B. No. 345
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirtieth State Legislature
Regular Session of 2019
State of Hawaii
Your Committee on Health, to which was referred H.B. No. 345 entitled:
"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"
begs leave to report as follows:
The purpose of this measure is to provide a general excise tax exemption for amounts received from the sale of mobility enhancement equipment, prescription drugs sold pursuant to a doctor's prescription, and prosthetic devices.
This measure also expands the definition of prosthetic devices to include devices that are worn on the body.
The O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i and one individual provided testimony in support of this measure. The Department of Taxation and Tax Foundation of Hawaii provided comments.
Your Committee has amended this measure by:
(1) Changing the effective date to July 1, 2050; and
(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.
Your Committee notes that, should this measure be approved, the Department of Taxation has requested that the effective date be moved to January 1, 2020, to provide the Department with sufficient time to prepare any relevant tax forms.
As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 345, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 345, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Health,
JOHN M. MIZUNO, Chair