STAND. COM. REP. NO. 2463

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2421
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
S.B. No. 2421 entitled:

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to allow an income tax check
off for unlisted organizations, state agencies, and state
programs in blank amounts.

     The measure allows the taxpayer to contribute income tax
refunds or to allow an additional payment with the payment of
income taxes.  The income tax form is to specifically state that
such contributions are qualified charitable contributions for
income tax purposes.

     Testimony was received from the Department of Taxation and
the Libertarian Party of Hawaii.  Comments were received from the
Tax Foundation of Hawaii.

     Your Committee notes that many other states allow income tax
check offs for state programs and nonprofit activities.
California, itself, has twelve check offs.  In fact, according to
Tax Administrators News, March, 1997, almost every state other
than Hawaii has an income tax check off for wildlife and many
have income tax check offs for children and other activities.

     Your Committee has amended this measure by deleting
references to state agencies and programs.  In addition, the

 
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                                   STAND. COM. REP. NO. 2463
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measure has been amended to specifically allow an income tax
check off for the Youth Conservation Corps, Youth Environmental
Services, and Sierra Club, Hawaii Chapter.  All of these
organizations are qualified nonprofits dedicated to assisting the
environment.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of
S.B. No. 2421, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2421,
S.D. 1, and be placed on the calendar for Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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