Bill Text: HI SR102 | 2016 | Regular Session | Introduced

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Bill Title: Tax Review Commission; General Excise and Use Tax Increase Evaluation

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Passed) 2016-04-05 - Report and Resolution Adopted. [SR102 Detail]

Download: Hawaii-2016-SR102-Introduced.html

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THE SENATE	S.R. NO.	102
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

SENATE RESOLUTION

 

 

REQUESTING THE TAX REVIEW COMMISSION TO EVALUATE THE IMPACTS OF GENERAL EXCISE AND USE TAX INCREASES PROPOSED DURING THE REGULAR SESSION OF 2016.

 

 

     WHEREAS, it is anticipated that a Tax Review Commission will be convened, pursuant to Article VII, section 3, of the State Constitution; and

 

     WHEREAS, the basic duties of the Tax Review Commission are to evaluate the State's tax structure and recommend revenue and tax policy; and

 

     WHEREAS, during the Regular Session of 2016, the Legislature considered two proposals to increase the general excise tax and use tax, one to finance long-term care benefits and the other to fund education programs; and

 

     WHEREAS, reliable estimates of the general fund revenue impacts of the proposed general excise and use tax increases were relatively easy to obtain from the Department of Taxation; and

 

     WHEREAS, other impacts, however, were not understood or fully discussed because of the lack of sufficient objective information; and

 

     WHEREAS, the impacts that should be better understood include the following:

 

     (1)  The persons or businesses that will actually bear the cost of the tax increases;

 

     (2)  The extent of any regressivity that is likely to be caused by the tax increases;

 

     (3)  The compatibility of the tax increases with the public's general preference for a progressive tax structure;

 

     (4)  The necessity for income tax credits to relieve the burden on low-income residents;

 

     (5)  The proportion of the tax increases that will be exported;

 

     (6)  The assurance that revenues from the tax increases would be dedicated to and expended exclusively for their intended purpose;

 

     (7)  The fairness of imposing such a broad and substantial tax increase on all taxpayers, including many who would not benefit from the programs that the tax increases are intended to fund; and

 

     (8)  The capability of the Department of Taxation to implement the tax increases; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-eighth Legislature of the State of Hawaii, Regular Session of 2016, that the Tax Review Commission is requested to conduct or commission a study evaluating the impacts of a general excise and use tax increase, as proposed under Senate Bill No. 2599 for public education and Senate Bill No. 2478 for long-term care financing; and

 

     BE IT FURTHER RESOLVED that the Tax Review Commission is requested to submit the study to the Legislature and Governor with the Commission's Final Report under Article VII, section 3, of the State Constitution; and

 

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Chairperson of the Tax Review Commission.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Tax Review Commission; General Excise and Use Tax Increase Evaluation