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 Resolution asks Hawaii's Department of Taxation to study how corporations report income, especially regarding foreign subsidiaries, to help plan future state budgets. The analysis will examine different reporting methods, estimate tax revenue from companies with foreign structures, and compare Hawaii's current system with approaches used by other states. The Department must submit its findings to the Legislature by early 2027 without changing any existing tax laws. This study aims to provide data-driven insights for long-term fiscal planning while respecting taxpayer privacy.