STAND. COM. REP. NO. 878

Honolulu, Hawaii

, 2005

RE: H.B. No. 1033

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1033 entitled:

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

begs leave to report as follows:

The purpose of this bill is to provide equitable treatment for farmers by establishing a refundable Farmers Irrigation Income Tax Credit that is equal to the difference between the amount paid by a farmer for water purchased from the county, and the amount that the farmer would have paid for water had the farmer had access to a state irrigation system.

The Hawaii Agriculture Research Center, Hawaii Farm Bureau Federation, Big Island Farm Bureau, Maui County Farm Bureau, and Land Use Research Foundation of Hawaii testified in support of this bill. The Department of Agriculture supported the intent of this measure. The Department of Taxation opposed this bill. The Tax Foundation of Hawaii submitted comments.

Your Committee has amended this measure by:

(1) Changing its effective date to July 1, 2010, to encourage 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. 1033, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1033, H.D. 1.

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

 

____________________________

DWIGHT TAKAMINE, Chair