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 S.B. No. 2364, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to raise the income tax deduction for National Guard members and military reservists.

The Hawaii Army National Guard and the Department of Defense testified in support of this bill. The Chamber of Commerce of Hawaii supported the intent of this measure. The Department of Taxation opposed this bill. The Tax Foundation of Hawaii provided 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. 2364, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2364, S.D. 1, H.D. 1.