STAND. COM. REP. 2090

Honolulu, Hawaii

, 2004

RE: S.B. No. 2917

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 S.B. No. 2917 entitled:

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

begs leave to report as follows:

The purpose of this measure is to provide an income tax exemption for members of the reserve components of the United States military, including the Hawaii national guard, during the period of deployment overseas in a combat zone.

Testimony in support of this measure was received by the Department of Taxation and State Department of Defense. Comments were received from the Tax Foundation of Hawaii.

Your Committee recognizes that Hawaii's citizen soldiers and airmen of the reserve components and the Hawaii national guard are placed in harm's way while deployed overseas supporting our nation's war on terrorism. These men and women usually earn less at their military pay while deployed than they do at their civilian jobs. This measure eases their financial burden while being deployed.

Your Committee has amended this measure by applying the tax provision to taxable years beginning after December 31, 2002, and making technical, nonsubstantive amendments.

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 S.B. No. 2917, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2917, 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