Agenda

Sales Tax Exemptions

Senator Edgar Malepeai

The State Sales Tax Interim Committee has only met once. They discussed overviews only, no specifics were discussed.

Interim Committee is reviewing ALL aspects of exemptions, including companies.

Committee is made of representatives on both sides of the issues, forcing the committee to review all exemptions.

Committee is looking at entire tax structure, but focusing on the sales tax & exemptions.

There will be no new exemptions until all current exemptions have been reviewed.

Revenue this year compared to last year has not fallen significantly, overall revenue is down however.

Edgar Malepeai is also on the Unemployment Insurance committee

The Unemployment Committee is not going well. The legislative committee met with the labor committee. Mr. Roger Manson will be invited to be the next special speaker at the Sept. 18 State Issues Committee meeting. He will be discussing unemployment and the Unemployment Committee.

A lot of the sales tax exemptions do not have a sunset for review. Rep. Elaine Smith suggested sunsets on all exemptions for review purposes. State Issues Committee has supported sunsets in the past.

State Issues Committee would like the Sales Tax Interim Committee to look at the regulatory side of exemptions.

Rep. Elaine Smith feels that looking at the regulatory side will be time intensive and unrealistic.

Sen. Edgar Malepeai feels the Interim Committee will work slowly and may take several years to make sure tax exemptions are looked at fully.

Committee is looking at business climate.

Sept. 8-9, 2003 will be the next meeting dates for the Sales Tax Interim Committee.

The Chamber State Issues Committee will be provided with a list and description of the exemptions for review at the next committee meeting. Chamber staff will then forward the exemption issues discussed to Sen. Malepeai so he knows how the business community in his district feels.