CONFERENCE COMMITTEE REP. NO. 113

Honolulu, Hawaii

                 , 2007

RE:    S.B. No. 1882

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1882, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

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 reduce the tax burden for lower income resident taxpayers by establishing a graduated food tax credit.

     Your Committee has amended this bill by expanding the current low-income refundable tax credit and renaming it the refundable food/excise tax credit.  The new credit will provide additional income brackets, raise the income cap to increase the number of people who qualify for the credit, and raise the amount of the tax credit for each bracket to provide tax relief to lower income families.  The new brackets and credit amounts more accurately reflect current needs and incomes of those who are struggling to pay for necessities.

     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 S.B. No. 1882, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1882, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MARCUS R. OSHIRO, Chair	____________________________ CAROL FUKUNAGA, Chair
	____________________________ ROSALYN H. BAKER, Co-Chair