STAND. COM. REP. NO. 3458

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1527

       H.D. 1

       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 Ways and Means, to which was referred H.B. No. 1527, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require the Department of Taxation to evaluate, and make recommendations regarding, certain tax credits and exemptions.

 

     Your Committee received testimony in support of this measure from United Public Workers.

 

     Your Committee received testimony in opposition to this measure from Hawaii Housing Finance and Development Corporation, Catholic Charities Hawaii, EAH Housing, Hawaii Association of Realtors, and Land Use Research Foundation of Hawaii.

 

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

 

     Your Committee finds that the creation of sound tax policy requires comprehensive information about the tax credits and exemptions offered by the State. Currently, there are a variety of tax credits and exemptions provided in Title 14 of the Hawaii Revised Statutes.  However, policymakers do not have comprehensive information regarding the intended objectives or actual economic effects of each credit or exemption.  Your Committee believes that requiring the Department of Taxation to routinely report on existing and new tax credits and exemptions will provide the Legislature and administration with the information necessary to develop the best tax policy for the State.

 

     Your Committee has amended this measure by inserting an appropriation for an unspecified amount to offset the costs incurred by the Department of Taxation to evaluate certain tax credits and exemptions.

 

     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. 1527, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1527, 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,

 

 

 

________________________________

JILL N. TOKUDA, Chair