STAND. COM. REP. NO. 1197
Honolulu, Hawaii
RE: H.B. No. 1544
H.D. 1
S.D. 1
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2009
State of Hawaii
Madam:
Your Committee on Ways and Means, to which was referred H.B. No. 1544, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TAX EXEMPTIONS,"
begs leave to report as follows:
The purpose of this measure is to conform the state tax exemption to the personal exemption phase-out provision found in section 151 of the Internal Revenue Code.
Additionally, this measure adjusts the income level at which the phase-out begins by using the inflation-adjusted amounts as of July 1, 2008, and by further reducing those amounts by twenty-five per cent. This measure will be repealed on June 30, 2015.
One state agency submitted testimony in opposition to this measure. One organization submitted comments on this measure. Written testimony and comments may be reviewed on the Legislature's website.
Your Committee finds that this measure will result in a phase-out of the personal exemption (which is $1,040) for higher income earners. Your Committee further finds that reducing the phase-out threshold for the state personal income tax exemption will create savings for the State that are necessary to the State's financial plan for closing the current budget deficit.
Your Committee has amended this measure by changing the effective date to January 1, 2050, to facilitate further discussion.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1544, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1544, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ DONNA MERCADO KIM, Chair |
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