STAND. COM. REP. NO.  631

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1137

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Human Services & Housing, to which was referred H.B. No. 1137 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to increase fire safety by establishing a tax deduction of up to $7,000 for the installation of an automatic fire sprinkler system in residences.

     The State Fire Council and Honolulu Fire Department testified in support of this bill.  The Department of Taxation (DOTAX) opposed this measure.  The Tax Foundation of Hawaii provided comments.

     Your Committee respectfully requests the Committee on Finance to review and address the concerns raised by DOTAX.

     As affirmed by the record of votes of the members of your Committee on Human Services & Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1137 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Human Services & Housing,

____________________________

MAILE SHIMABUKURO, Chair