Bill > SCR185

This concurrent resolution requests the Department of Taxation to conduct a thorough study of how corporations report their income for tax purposes, specifically examining how income earned by foreign subsidiaries is treated. This analysis is intended to help the state government better plan its long-term finances by understanding the impact of different corporate income reporting structures, such as separate entity reporting, water's-edge combined reporting, and worldwide combined reporting, on revenue stability and predictability, and will also consider potential revenue impacts, interactions with Hawaii's current tax calculation methods, administrative feasibility, and approaches used by other states. The Department of Taxation is required to submit a report of its findings to the Legislature before the start of the 2027 legislative session.