STAND. COM. REP. NO.  655

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 805

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 805 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to repeal the income tax exemption for income derived from stock options or stock from a qualified high technology business because the State can no longer afford the cost of this tax exemption.

     The Department of Taxation, and a concerned individual supported this bill.  The Grassroot Institute of Hawaii opposed this bill.  The Tax Foundation of Hawaii provided comments.

     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. 805 and recommends that it pass Second Reading 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