CONFERENCE COMMITTEE REP. NO. 2

Honolulu, Hawaii

                 , 2009

RE:    H.B. No. 1747

       H.D. 1

       S.D. 1

       C.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1747, H.D. 1, S.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 amend State tax law by:

     (1)  Increasing State income tax rates for high income earners, applying to taxable years beginning after December 31, 2008;

     (2)  Increasing the standard deduction amount and the allowable personal exemption amount, applying to taxable years beginning after December 31, 2010; and

     (3)  Increasing the amount of the personal deduction by 10 percent.

All of the provisions in this bill will be repealed on December 31, 2015.

     Your Committee has amended this bill by adjusting the taxable income and tax base amounts for the new tax rates of 9, 10, and 11 percent for:

(1)  Joint filers with incomes in excess of $300,000;

(2)  Head of household filers with incomes in excess of $225,000; and

(3)  Single filers with incomes in excess of $150,000.

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

     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. 1747, 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. 1747, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ DONNA MERCADO KIM, Chair

____________________________ MARCUS R. OSHIRO, Chair