STAND. COM. REP. NO.  1505

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 98

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 98, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to reduce the tax liability for low-income taxpayers by replacing the refundable food/excise tax credit with a non-refundable low-income tax credit that will reduce a taxpayer's income tax amount if the taxpayer's adjusted gross income falls below certain thresholds.

A concerned individual supported this measure.  The Department of Human Services; Department of Taxation; Tax Foundation of Hawaii; PHOCUSED; Goodwill Industries of Hawaii, Inc.; Catholic Charities Hawaii; Hawaii Appleseed Center for Law and Economic Justice; and a concerned individual commented on this measure.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2030, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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 S.B. No. 98, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 98, S.D. 1, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair