Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 957, H.D. 1, S.D. 1, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to expand state individual income tax brackets for those filing as:

(1) Single or married filing separately;

(2) Joint and qualified widows;

(3) Head of households; and

(4) Taxed imposed on estates and trusts;

to bring the tax laws more in line with the economic realities of the high cost of living in Hawaii and to bring long-term tax relief to low- and middle-income families.

Your Committee on Conference has amended this bill by increasing each bracket uniformly by 20 percent for those filing as:

(1) Single or married filing separately;

(2) Joint and qualified widows; and

(3) Head of households.

Your Committee on Conference has also amended this bill by:

(3) Providing a one-time flood victims' income tax credit.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 957, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 957, H.D. 1, S.D. 1, C.D. 1.