Bill Text: HI SB2238 | 2012 | Regular Session | Amended

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Bill Title: General Excise Tax; Nonprofits

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-07-06 - (S) Act 219, 7/5/2012 (Gov. Msg. No. 1322). [SB2238 Detail]

Download: Hawaii-2012-SB2238-Amended.html

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CONFERENCE COMMITTEE REP. NO. 89-12

 

Honolulu, Hawaii

                 , 2012

 

RE:    S.B. No. 2238

       S.D. 1

       H.D. 2

       C.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sirs:

 

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2238, S.D. 1, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to:

 

     (1)  Establish monetary awards for whistleblowers for certain actions that may result in a Department of Taxation action for violations of tax laws;

 

     (2)  Prohibit penalties from being added to tax underpayments of misstatements and erroneous claims for refund or credit of amounts on which certain other penalties are already imposed;

 

     (3)  Require that nonprofit organizations receive notice before denial of a general excise tax benefit; and

 

     (4)  Limit liability of persons having control of certain amounts held in trust for nonprofit organizations.

 

     Your Committee on Conference finds that the prohibitions on additional penalties in this measure have been incorporated in another measure, and your Committee on Conference has several concerns regarding the proposed whistleblower language.  Your Committee on Conference further finds that nonprofit organization provisions in this measure address problems that arose following the enactment of Act 155, Session Laws of Hawaii 2010.

 

     Your Committee on Conference has amended this measure accordingly, by:

 

     (1)  Deleting the proposed language on monetary awards for whistleblowers;

 

     (2)  Deleting the proposed language regarding the prohibitions on additional penalties for tax underpayments of misstatements and erroneous claims for refund or credit of amounts on which certain other penalties are already imposed;

 

     (3)  Amending to the definition of "nonprofit organization" in section 237-41.5, Hawaii Revised Statutes;

 

     (4)  Inserting an effective date of July 1, 2012; and

 

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2238, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2238, S.D. 1, H.D. 2, C.D. 1.

 

Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

 

____________________________ ANGUS L.K. MCKELVEY, Co-Chair		____________________________ CAROL FUKUNAGA, Chair
____________________________ ISAAC W. CHOY, Co-Chair		____________________________ DAVID Y. IGE, Co-Chair