Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 1721 entitled:

begs leave to report as follows:

The purpose of this measure is to increase the income ceiling for taxpayers qualifying for the renter tax credit and to clarify the definition of "adjusted gross income" under the income tax law.

Opposing testimony was presented by an individual. The Department of Taxation and Tax Foundation of Hawaii presented comments on the measure.

This measure raises the adjusted gross income ceiling from $30,000 to $35,000 for the purpose of qualifying for the renter tax credit and provides that the term "adjusted gross income" under the state income tax law means the taxpayer's federal adjusted gross income.

Your Committee has amended this measure by replacing its contents with the language of S.B. No. 1854, S.D. 1, a measure previously considered and approved by your Committee. As amended, this measure repeals the current limit of $160 for the state rent supplement stipend, but leaves unspecified the proposed maximum stipend amount. Your Committee finds that the current stipend maximum of $160 is too low to provide meaningful financial assistance to property owners who provide rental housing, and that this issue warrants further consideration by the Legislature.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1721, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1721, S.D. 1, and be referred to the Committee on Ways and Means.