CONFERENCE COMMITTEE REP. NO. 137

Honolulu, Hawaii

                 , 2011

RE:    S.B. No. 570

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 570, S.D. 2, H.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 measure is to raise additional revenues by:

     (1)  Providing for the taxation of the pension income of:

          (A)  An individual filer with a federal adjusted gross income of $100,000 or more;

          (B)  A joint or surviving spouse filer with a federal adjusted gross income of $200,000 or more; and

          (C)  A head of household with a federal adjusted gross income of $150,000 or more;

     (2)  Making inoperative for the same taxpayers the deduction for state taxes paid;

     (3)  Limiting the amount of itemized deductions that may be claimed by the same taxpayers; and

     (4)  Delaying the standard deduction and personal exemption increases approved under Act 60, Session Laws of Hawaii, 2009, and making the increases permanent.

     Your Committee on Conference has amended this measure by deleting provisions that provided for the taxation of certain pension incomes and making technical conforming amendments.

     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 S.B. No. 570, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 570, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MARCUS R. OSHIRO, Chair	____________________________ DAVID Y. IGE, Chair
	____________________________ CLAYTON HEE, Co-Chair