STAND. COM. REP. NO.  813

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 146

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 146 entitled:

"A BILL FOR AN ACT RELATING TO CONFORMITY OF THE INCOME TAX LAW TO THE FEDERAL INTERNAL REVENUE CODE,"

begs leave to report as follows:

The purpose of this measure is to adopt "moving date conformity," which will allow changes in the federal Internal Revenue Code to automatically apply to state income tax laws.

The Department of Taxation and Tax Foundation of Hawaii submitted comments on this measure.

     Your Committee has amended this measure by:

     (1)  Amending the effective date to July 1, 2030, to facilitate 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 H.B. No. 146, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 146, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

SYLVIA LUKE, Chair