STAND. COM. REP. NO.  1913


Honolulu, Hawaii

                , 2019


RE:   S.B. No. 1360

      S.D. 1

      H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




     Your Committee on Finance, to which was referred S.B. No. 1360, S.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to require partnerships, estates, and trusts to withhold taxes on the income of nonresident partners and beneficiaries.


     Aloha Petroleum LLC and an individual opposed this measure.  The Department of Taxation, Tax Foundation of Hawaii, and Master Limited Partnership Association provided comments.


     Your Committee has amended this measure by exempting publicly traded partnerships from withholding taxes on behalf of nonresidents but requiring these partnerships to file an annual information return with the Department of Taxation.


     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. 1360, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1360, 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,