REQUESTING THE DEPARTMENT OF TAXATION TO CONDUCT A COMPREHENSIVE ANALYSIS OF CORPORATE INCOME REPORTING STRUCTURES, INCLUDING THE TREATMENT OF FOREIGN SUBSIDIARY INCOME, TO INFORM LONG-TERM FISCAL PLANNING.

This Senate Concurrent Resolution asks Hawaii's Department of Taxation to study how corporations report income, particularly regarding foreign subsidiaries, to help the state plan its long-term budget. The analysis will examine different reporting methods like separate entity or combined reporting, estimate revenue from companies with foreign structures, and compare Hawaii's approach to other states. The department must deliver its findings to the Legislature by late 2026 without changing any tax laws. This request focuses on gathering data to better understand the state's tax base rather than proposing immediate policy changes.