STAND. COM. REP. NO. 1041

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1089

       H.D. 1

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1089, H.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to update the state income tax laws to conform to amendments made to the federal Internal Revenue Code in calendar year 2010.

 

     Your Committee received testimony in support of this measure from Frederick D. Pablo, Director, Department of Taxation.

 

     Your Committee received comments on this measure from the Tax Foundation of Hawaii.

 

     Your Committee finds that this measure is the annual conformity bill submitted by the Department of Taxation pursuant to section 235-2.5, Hawaii Revised Statutes, to maintain state income tax conformity with the federal Internal Revenue Code by adopting changes made during the previous year that are appropriate for Hawaii law.

 

     Your Committee has amended this measure by:

 

     (1)  Providing that the thresholds for the operation of Section 68 of the Internal Revenue Code (with respect to the overall limitation on itemized deductions) shall be those that were operative for federal tax year 2009;

 

     (2)  Changing the effective date to July 1, 2050, to encourage further discussion on the measure; and

 

     (3)  Making a technical, nonsubstantive amendment for consistency and style.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1089, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1089, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair