HI SCR117

Director of Taxation requested to convene a task force to evaluate worldwide combined reporting (complete reporting) as a method for calculating corporate taxation in Hawaii.

Task force directed to compare worldwide combined reporting to other methods, such as tax haven list approaches, and evaluate suitability for Hawaii based on administration costs, burden on corporations, expected revenue increases, and other relevant criteria.

January 2019 report estimates Hawaii loses $38,000,000 annually due to current tax laws that do not require worldwide combined reporting of corporate income.

Task force composition includes Director of Taxation (chair), representatives from Senate and House, Chief State Economist, one University of Hawaii-nominated economist appointed by Governor, and an invited Tax Foundation of Hawaii member.

Task force required to submit findings, recommendations, and any proposed legislation to the Legislature no later than twenty days before the 2020 Regular Session convening.