DEPARTMENT OF TAXATION
NOTICE OF PUBLIC HEARING

TIME: Wednesday, May 24, 2006
9:00 a.m.

PLACE: Princess Ruth Keelikolani Building
Room 310
830 Punchbowl Street
Honolulu, Hawaii 96813

Pursuant to chapter 91, Hawaii Revised Statutes, the Director of Taxation of the State of Hawaii will hold a public hearing at the above-referenced time and place to allow the public to comment on the proposed adoption of the following administrative rules.

The proposed administrative rules clarify and provide examples concerning the general excise tax exemption provided in Section 237-20, Hawaii Revised Statutes (”HRS”). Section 237-20, HRS, provides that the reimbursement of costs or advances made for or on behalf of one person by the taxpayer shall not constitute gross income to the taxpayer, unless the taxpayer receiving such reimbursements also receives additional monetary consideration for making such costs or advances.

All interested parties are invited to attend and present their views orally or in writing. Written statements may be submitted to the Director of Taxation before or at the public hearing.

Special accommodations (i.e., sign language interpreter, large print, or taped materials) can be requested by contacting the Director’s Office three weeks in advance of the public hearing.

A copy of the proposed rules may be picked up between 7:45 a.m. and 4:30 p.m., Monday through Friday, from the Director’s Office at the Department of Taxation, Room 221, Princess Ruth Keelikolani Building, 830 Punchbowl Street, Honolulu, Hawaii and at the District Tax Offices located at 3060 Eiwa Street, Lihue, Kauai; 54 High Street, Wailuku, Maui; and 75 Aupuni Street, Hilo, Hawaii.

A copy of the proposed rules will also be mailed at no cost to any person who requests a copy.

A copy of the proposed rules is also available on the internet at www.hawaii.gov/ltgov.

For more information, or to request a copy of the proposed rules, call the Department of Taxation, Director’s Office at 587-1540.

DATED: Honolulu, Hawaii, April 21, 2006.
(SB03509233 4/21/06)