STAND. COM. REP. NO. 446

Honolulu, Hawaii

RE:    S.B. No. 570

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 570 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend the law relating to taxation

     Your Committee conducted a public decision making on a proposed draft of this measure.  The purpose of the proposed draft is to reduce or eliminate the state tax deduction for general excise taxes paid by a taxpayer in taxable years beginning after December 31, 2010, and through December 31, 2012, depending upon the taxpayer's federal adjusted gross income and filing status.

     Your Committee received testimony in opposition to this measure from Brett Aweau.

     Your Committee finds that the proposed draft of this measure provides initiatives that are needed to address the current economic downturn.

     Your Committee has amended this measure by replacing its contents with the contents of the proposed draft.

     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. 570, as amended herein, and recommends that it be recommitted to the Committee on Ways and Means, in the form attached hereto as S.B. No. 570, S.D. 1, for further consideration.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair