STAND. COM. REP. NO. 2196

Honolulu, Hawaii

RE:    S.B. No. 2835

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Human Services, to which was referred S.B. No. 2835 entitled:

"A BILL FOR AN ACT RELATING TO INCOME TAX CREDIT FOR LOW-INCOME HOUSEHOLD RENTERS,"

begs leave to report as follows:

     The purpose and intent of this measure is to bring tax relief to Hawaii's low-income senior residents by tripling the low-income household renters income tax credit for each taxpayer who is sixty-five years of age or older.

     Your Committee received testimony in support of this measure from the Office of the Governor, Department of Human Services, Department of Taxation, Hawaii Primary Care Association, and one individual.  Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that a large portion of Hawaii's population, including many seniors, are dependent on fixed incomes to survive.  The receipt of monetary benefits through tax relief efforts can assist residents in living a more healthy and independent lifestyle.  Your Committee heard testimony expressing concern that this measure provides relief only to individuals age sixty-five and older despite the fact that many people of all ages struggle to make ends meet.

     Your Committee has amended this measure by:

     (1)  Removing the age limit on the tax credit so that the credit applies to all renters with an adjusted gross income of less than $30,000 who have paid more than $1,000 in rent during a taxable year;

     (2)  Changing the tax credit to double instead of triple the tax credit;

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2835, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2835, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair