STAND. COM. REP. 2960

Honolulu, Hawaii

, 2004

RE: H.B. No. 1904

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs, and Government Operations, to which was referred H.B. No. 1904, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to increase the income tax deduction provided to national guard members and other reservists.

Testimony in support of this measure was received from the State Department of Defense, Chamber of Commerce of Hawaii, and four individuals. Testimony in opposition was received from the Department of Taxation. Comments were received from the Tax Foundation of Hawaii.

Your Committee finds that with the global uncertainties that exist today, it is imperative that the State maintain its military strength by supporting the Hawaii national guard and other reserve components. A strong military presence locally not only enhances our nation's war on terrorism, but also supports the State during times of natural disasters and other emergencies.

By increasing the income tax deduction to national guard members and other reservists, this measure provides an excellent incentive for the recruitment and retention of qualified and motivated national guard members and reservists.

Your Committee has amended this measure to provide for a $5,000 income tax exemption, on the recommendation of the Department of Defense, as reflective of inflation since the law was amended to provide for the current $1,750, by Act 340, Session Laws of Hawaii, 1990.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs, and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1904, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1904, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation, Military Affairs, and Government Operations,

____________________________

CAL KAWAMOTO, Chair