Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1784 entitled:

begs leave to report as follows:

The purpose of this bill is to make adjustments to the standard deductions of Hawaii's income tax. Specifically, this bill raises the state income tax standard deduction and personal exemption amount to 80 percent of the federal amount for 2004, 90 percent for 2005, and 100 percent for 2006.

The Hawaii State Commission on the Status of Women, Hawaii Women's Coalition, National Federation of Independent Business-Hawaii, National Association of Social Workers, Welfare and Employment Rights Coalition, 3Point, and two concerned individuals testified in support of this bill. The Department of Taxation opposed this bill. The Tax Foundation of Hawaii commented on this measure.

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 H.B. No. 1784, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1784, H.D. 1, and be placed on the calendar for Third Reading.