STAND. COM. REP. NO. 2335

Honolulu, Hawaii

RE:    S.B. No. 2834

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2834 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to allow gambling losses to be deducted up to the amount of gambling winnings for state income tax purposes.

     Your Committee finds that this measure brings Hawaii into conformity with the Internal Revenue Code on the treatment of wagering winning and losses and eliminates confusion currently experienced by taxpayers that travel to gambling destinations.

     Testimony in support of this measure was submitted by a government agency and comments were submitted by a private organization.  The written testimony and comments may be reviewed on the Legislature's website.

     Your Committee amended this measure by correcting the text of section 235-2.4, Hawaii Revised Statutes, which is amended by this measure.  The text of section 235-2.4, Hawaii Revised Statutes, now includes the amendments made to the section by Act 133, Session Laws of Hawaii 2009.

     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 S.B. No. 2834, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2834, 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,

____________________________

DONNA MERCADO KIM, Chair