STAND. COM. REP. NO. 498

Honolulu, Hawaii

, 2005

RE: H.B. No. 1583

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Public Safety & Military Affairs, to which was referred H.B. No. 1583 entitled:

"A BILL FOR AN ACT RELATING TO INCOME TAX,"

begs leave to report as follows:

The purpose of this bill is to support Hawaii-based members of the military when they are assigned by military orders outside of Hawaii.

Specifically, this bill exempts from Hawaii income taxes any income received by a member of the armed forces and the reserve components of the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States, and the Hawaii National Guard while the member is assigned by military orders outside of Hawaii.

Testimony in support of the measure was submitted by the Department of Defense, Hawaii National Guard Enlisted Association, and a member of the Hawaii National Guard. Testimony in opposition to this bill was received by the Department of Taxation. Comments were also received from the Tax Foundation of Hawaii.

Your Committee finds that more than two thousand Hawaii National Guard troops and countless more of our residents who are members of the armed services have been deployed to Iraq and Afghanistan for periods extending more than one year. This has placed great strain on their families as many of them experience economic hardship due to their reduced incomes. Accordingly, your Committee believes that this bill will provide these families with financial assistance and support by easing their state income tax burden.

As affirmed by the record of votes of the members of your Committee on Public Safety & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1583 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Public Safety & Military Affairs,

 

____________________________

KEN ITO, Chair