Bill Text: HI HB334 | 2013 | Regular Session | Amended

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Bill Title: General Excise Tax; Exemption; Hotel Suboperator; Association Submanager

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Engrossed - Dead) 2013-03-07 - Referred to THA/CPN, WAM. [HB334 Detail]

Download: Hawaii-2013-HB334-Amended.html

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STAND. COM. REP. NO.  815

 

Honolulu, Hawaii

                , 2013

 

RE:   H.B. No. 334

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 334 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to allow for consistent and uniform application of the tax law for taxpayers in the hospitality industry.  Specifically, this bill:

 

     (1)  Makes permanent the provision that allows submanagers the same General Excise Tax exemption allowed to managers or board of directors of associations of apartment owners or nonprofit homeowners or community associations for amounts received in reimbursement of sums paid for common expenses; and

 

     (2)  Makes permanent the provision that allows operators and suboperators of hotels a General Excise Tax exemption for amounts received from the operator or owner of the hotel or a timeshare association, as applicable, for disbursement for employee wages, salaries, payroll taxes, insurance premiums, and benefits.

 

     The Hawaii Tourism Authority, Outrigger Hotels Hawaii, Hawaii Association of REALTORS, and Wyndham Vacation Ownership supported this measure.  The Department of Taxation and Tax Foundation of Hawaii offered comments on this measure.

 

     Your Committee has amended this measure by changing its effective date to July 1, 2030, to promote 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 H.B. No. 334, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 334, H.D. 1.

 

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

 

 

		____________________________ SYLVIA LUKE, Chair