REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO CONDUCT A STUDY ON THE EFFECT OF STATE AND COUNTY TAX STRUCTURES AND PROGRAMS ON THE LONG-TERM ECONOMIC GROWTH OF THE STATE OF HAWAII.

This bill requests the Hawaii Department of Business, Economic Development, and Tourism to conduct a study examining how state and county tax structures affect the state's long-term economic growth. The study will analyze factors such as business formation rates, startup survival, self-employment levels, and operational costs including taxes, energy, and labor. It will also evaluate how existing tax programs can be realigned to better support economic development while ensuring state and county programs are funded equitably. The resolution directs the department to work with the University of Hawaii's Economic Research Organization to develop policy recommendations based on the findings.