STAND. COM. REP. NO. 6

Honolulu, Hawaii

RE:    S.B. No. 732

       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 Education and Housing, to which was referred S.B. No. 732 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to increase the income tax check-offs in support of public education and public libraries.

     Testimony in support of this measure was submitted by one state agency.  One state agency submitted testimony in opposition.  One private organization submitted comments.

     Your Committee finds that this measure would provide taxpayers with additional options to support Hawaii's public schools and libraries.  The Department of Taxation estimates that beginning in 2010, a check-off for the school-level minor repairs and maintenance special fund could generate about $88,000 annually and the check-off for public libraries could generate about $77,000 annually.

     Your Committee has amended this measure to give the Department of Taxation additional time to make changes in the Department's computer system and tax forms by making the measure applicable to taxable years beginning after December 31, 2009.

     As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 732, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 732, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education and Housing,

____________________________

NORMAN SAKAMOTO, Chair