STAND. COM. REP. NO. 2249

Honolulu, Hawaii

RE:    S.B. No. 2300

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 2300 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Increase the maximum value of the low-income household renter's income tax credit to $150 per qualified exemption for households;

     (2)  Adjust the income threshold to allow households with an adjusted gross income of less than $60,000 to claim the credit; and

     (3)  For each taxable year beginning after December 31, 2016, increase the amount of the credit, income threshold amount, and minimum amount paid in rent to qualify for the credit by doubling and adjusting each amount for inflation.

     Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs; Americans for Democratic Action Hawaii; PHOCUSED; Hawaii Appleseed Center for Law and Economic Justice; League of Women Voters; American Association of University Women, Hawaii; Hawaii Women's Coalition; The CHOW Project; Hawaii Children's Action Network; and one individual.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee finds that the low income-household renters credit is designed to assist many of Hawaii's low- and moderate-income families with the high cost of rent in the State.  However, the credit has not been updated to address today's costs.  This measure would adjust the credit and its income and rent thresholds for inflation, providing meaningful relief for renter households that struggle to pay rent.

     Your Committee has amended this measure by:

     (1)  Deleting the definition of "consumer price index";

     (2)  Deleting language that, for each taxable year beginning after December 31, 2016, would have allowed inflationary adjustments to the low income-household renters credit, income threshold amount, and minimum amount paid in rent; and

     (3)  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 Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2300, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2300, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

BREENE HARIMOTO, Chair