STAND. COM. REP. NO. 19

Honolulu, Hawaii

RE:    S.B. No. 392

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Human Services and Housing, to which was referred S.B. No. 392 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend the income tax credit for low-income household renters to adjust for inflation.

     Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs; Hawaii State Commission on the Status of Women; Americans for Democratic Action Hawaii; Catholic Charities Hawai‘i; Democratic Party of Hawai‘i; Hawai‘i Appleseed Center for Law and Economic Justice; National Association of Social Workers, Hawaii Chapter; Partners in Care; Progressive Democrats of Hawai‘i; PHOCUSED; Hawaii Women's Coalition; ILWU Local 142; GLBT Caucus, Democratic Party of Hawai‘i; Hawaii State Coalition Against Domestic Violence; IMUAlliance; and ten individuals.  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 tax credit was established in 1977 to mitigate the high cost of housing in Hawaii.  Adjusted in 1981 and 1989, the credit provides a $50 tax credit per exemption for those taxpayers with adjusted gross incomes of less than $30,000 who paid more than $1,000 in rent during the tax year.  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.

     As affirmed by the record of votes of the members of your Committee on Human Services and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 392 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

SUZANNE CHUN OAKLAND, Chair