Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 699 entitled:

begs leave to report as follows:

The purpose of this bill is to provide an income tax credit to each resident individual taxpayer pursuant to Article VII, Section 6, of the Hawaii State Constitution (Constitution).

The constitutional provision requires the Legislature to provide a tax refund or credit to Hawaii taxpayers when the general fund balance at the close of each of two successive fiscal years exceeds five percent of the general fund revenues for each of the two fiscal years.

The Department of Taxation and Tax Foundation of Hawaii submitted comments.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 699, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 699, H.D. 1, and be placed on the calendar for Third Reading.