BILL NUMBER: SB 2140; HB 1715
INTRODUCED BY: SB by KOUCHI (Introduced by request of another party); HB by SAIKI (Introduced by request of another party)
EXECUTIVE SUMMARY: Extends the period in which a county may adopt a surcharge on state tax, under certain conditions, from 3/31/2019 to 6/30/2021.
BILL NUMBER: SB 1474, SD-1
INTRODUCED BY: Senate Committees on Education and Higher Education
EXECUTIVE SUMMARY: Increases the general excise and use taxes by 0.5% and provides that the revenue generated by the increased rate will be used for department of education (DOE) and University of Hawaii (UH) operations, including salaries and maintenance costs. With a tax increase of this magnitude, economic ripple effects are likely to be enormous because of the all-encompassing nature of the tax. We also question why such a massive increase is being sought given that DOE and UH already have a gargantuan share of the State budget but are still beset with such issues as frustrated teachers, students roasting in our classrooms, and a massive maintenance backlog. It also should be kept in mind that the bill does not ensure that increased funding will be made available for DOE or UH, as the case may be.
BILL NUMBER: HB 2416
INTRODUCED BY: LUKE
EXECUTIVE SUMMARY: Imposes GET and Use Tax on intangible property used in the State, while exempting revenues from using intangible property outside the State. We urge caution on this bill because of potentially far-reaching impact.
BILL NUMBER: SB 2086
INTRODUCED BY: K. RHOADS, Kidani
EXECUTIVE SUMMARY: Requires individuals who have not otherwise reported use tax to report it and pay it on their individual income tax return. This device is used in many other states with a use tax, with varying degrees of success. A proper cost-benefit analysis should be undertaken before adopting it here, because the administrative costs are likely to be considerable. The Committee should also consider a safe harbor provision because individuals may not be keeping the records required to establish the amount of liability.
BILL NUMBER: HB 590, HD-1
INTRODUCED BY: House Committee on Economic Development & Business
EXECUTIVE SUMMARY: Among other things, this measure provides general excise tax and use tax exemptions for operations and improvements of the Hawaii Film Studio. If this is passed, other agencies will be wanting similar exemptions to stretch their budget dollars a little further.
BILL NUMBER: HB 590
INTRODUCED BY: NAKASHIMA, JOHANSON, KEOHOKALOLE, C. LEE, LUKE, NISHIMOTO, OHNO, ONISHI, SAN BUENAVENTURA, WOODSON, YAMASHITA, Takumi
EXECUTIVE SUMMARY: Among other things, this measure provides general excise tax and use tax exemptions for operations and improvements of the Hawaii Film Studio. If this is passed, other agencies will be wanting similar exemptions to stretch their budget dollars a little further.
BILL NUMBER: HB 629
INTRODUCED BY: YAMANE, CULLEN, ITO, KONG, C. LEE, SAIKI, SAY, SOUKI, Choy, Yamashita
EXECUTIVE SUMMARY: Exempts personal income tax income and general excise tax income in an amount up to an unspecified percentage of the costs of construction and operation of projects entered into under a public-private partnership with the ERS to improve water infrastructure or water supply, or to promote clean energy. Authorizes ERS investments in such public-private partnerships. This strategy dodges procurement laws and budgeting, increases risk to ERS assets, and may even be prohibited by ERISA.
BILL NUMBER: HB 398, HD-1
INTRODUCED BY: House Committee on Economic Development & Business
EXECUTIVE SUMMARY: This measure is based on a Colorado statute upheld in federal court. It is in line with other states’ measures increasing pressure on remote sellers to collect and remit sales and use taxes owed on purchases by customers in the state. It has the potential to aid significantly in the enforcement and collection of GET and use taxes imposed under current law.
BILL NUMBER: HB 1413
INTRODUCED BY: LUKE
EXECUTIVE SUMMARY: Establishes a program, patterned after one in Alabama, giving remote sellers an incentive to register and pay over use taxes, which are due from their customers but have traditionally been difficult to collect. A “stick” such as a factor presence nexus law or regulation may be needed to raise the stakes for remote sellers who otherwise might stay in the shadows.
BILL NUMBER: HB 398
INTRODUCED BY: CHOY, OSHIRO
EXECUTIVE SUMMARY: This measure is based on a Colorado statute upheld in federal court. It is in line with other states’ measures increasing pressure on remote sellers to collect and remit sales and use taxes owed on purchases by customers in the state. It has the potential to aid significantly in the enforcement and collection of GET and use taxes imposed under current law.