Bill Text: HI HB475 | 2012 | Regular Session | Amended

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Bill Title: Taxation

Spectrum: Slight Partisan Bill (Republican 6-2)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB475 Detail]

Download: Hawaii-2012-HB475-Amended.html

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STAND. COM. REP. NO.  498

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 475

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 475 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to assist in reducing the cost of doing business in this State by establishing a temporary tax credit for manufacturing and export industries.

 

     The Department of Taxation testified in support of the intent of the measure.  The Tax Foundation of Hawaii commented on the measure.

 

     Your Committee finds that this measure grants preferential tax treatment to a very select group of taxpayers.  Your Committee also notes the concerns raised by the Department of Taxation regarding potential constitutional issues that could be created by applying the tax credit only to "domestic" entities.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting the requirement that the taxpayer claiming the credit be a domestic entity;

 

     (2)  Deleting the requirement that sources of the taxpayer's operating or manufacturing costs be domiciled in the State;

 

     (3)  Changing the effective date to July 1, 2112, to facilitate further discussion on the measure; and

 

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 475, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 475, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

 

 

		____________________________ ANGUS L.K. MCKELVEY, Chair