STAND. COM. REP. NO.  949

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 881

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 881 entitled:

"A BILL FOR AN ACT RELATING TO COST OF LIVING ADJUSTMENTS TO INCOME TAX RATES AND STANDARD DEDUCTION AND PERSONAL EXEMPTION AMOUNTS,"

begs leave to report as follows:

     The purpose of this bill is to assist Hawaii's taxpayers by basing the assessment of tax rates and the computations of the standard deductions and personal exemptions on inflation.

     The Department of Taxation testified in support of the intent of this bill.  The Tax Foundation of Hawaii submitted comments on this measure.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2020, to                    encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity,      consistency, and style.

     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 H.B. No. 881, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 881, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair