STAND. COM. REP. NO. 1310

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 694

       H.D. 1

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 694, 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 make adjustments to the state income tax law.

 

     More specifically, this measure:

 

     (1)  Repeals the temporary increase in income tax rates established by Act 60, Session Laws of Hawaii 2009, one year ahead of schedule by changing the sunset date of the increased tax rates from December 31, 2015, to December 31, 2014; and

 

     (2)  Changes income tax rates for taxable years beginning after December 31, 2014.

 

     Your Committee received comments on this measure from the Department of Taxation.

 

     Your Committee finds that this measure requires further consideration, given future budgetary needs.

 

     Your Committee has amended this measure by:

 

     (1)  Accurately reflecting the amendments made to the text of Act 60, Session Laws of Hawaii 2009, by Act 97, Session Laws of Hawaii 2011; and

 

     (2)  Clarifying that amendments made to section 235-51(a), (b), and (c), Hawaii Revised Statutes, by this measure shall not be repealed when that section is reenacted on December 31, 2014.

 

     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. 694, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 694, 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