STAND. COM. REP. NO.3534

Honolulu, Hawaii

, 2002

RE: H.B. No. 2365

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2365 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to provide an income tax credit to taxpayers as required by article VII, section 6, of the State Constitution.

Your Committee received testimony in support of this measure from a private citizen. The Department of Taxation and the Tax Foundation of Hawaii provided comments.

Your Committee finds that Article VII, section 6, of the State Constitution requires the Legislature to enact a tax credit if the general fund balance exceeds general fund revenues by 5% two years in a row.

This measure meets that Constitutional requirement, by allowing each taxpayer a $1 credit multiplied by the number of qualified exemptions a taxpayer is entitled to claim. The credit will be deductible for the 2002 taxable year.

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. 2365, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair