41            
HOUSE OF REPRESENTATIVES             H.C.R. NO.            
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE CONCURRENT
                        RESOLUTION
CONVENING A STUDY GROUP TO ADDRESS INCOME TAX SIMPLIFICATION. 



 1       WHEREAS, the state income tax law is based on and intended
 2   to conform as nearly as possible to the federal Internal
 3   Revenue Code; and
 4   
 5       WHEREAS, the state income tax law nevertheless contains
 6   many exceptions and modifications to the federal Internal
 7   Revenue Code; and
 8   
 9       WHEREAS, individual taxpayers must calculate their federal
10   and state tax liability separately and must file separate
11   returns; and
12   
13       WHEREAS, the calculation of the individual taxpayer
14   liability and the filing of returns is complex and time-
15   consuming; and
16   
17       WHEREAS, taxpayers and legislators have expressed an
18   interest in simplifying the tax process by calculating the
19   state tax liability as a percentage of the federal tax
20   liability; and
21   
22       WHEREAS, many states "piggyback" from the federal income
23   tax in the computation of state income tax liability; and
24   
25       WHEREAS, the revenue and technical implications of basing
26   state income tax liability on the federal income tax are
27   unclear; now, therefore,
28   
29       BE IT RESOLVED by the House of Representatives of the
30   Twentieth Legislature of the State of Hawaii, Regular Session
31   of 1999, the Senate concurring, that a study group be convened
32   during the 1999 legislative interim, with assistance from the
33   Legislative Reference Bureau, to formulate and review proposals
34   to simplify the state income tax by calculating the state
35   income tax liability as a percentage of the federal income tax
36   liability; and

 
 
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 1   
 2       BE IT FURTHER RESOLVED that the study group be composed of
 3   not more than nine members as follows:
 4   
 5       (1)  Four members from the House of Representatives, of
 6            whom at least two members shall sit on the Committee
 7            on Finance and one member shall be from the minority
 8            party, all of whom shall be appointed by the Speaker
 9            of the House of Representatives; 
10   
11       (2)  Four members from the Senate, of whom at least two
12            members shall sit on the Committee on Ways and Means
13            and one member shall be from the minority party, all
14            of whom shall be appointed by the President of the
15            Senate; and
16   
17       (3)  One representative from the Department of Taxation;
18   
19     and
20   
21       BE IT FURTHER RESOLVED that the study group is requested to
22   formulate and review proposals for workable modifications to
23   simplify the state income tax law; and
24   
25       BE IT FURTHER RESOLVED that the study group is requested to
26   evaluate the proposals in terms of:
27   
28       (1)  The consequences for Hawaii's economy, including the
29            revenue impact; and
30   
31       (2)  The technical and policy problems likely to be
32            encountered in implementing the proposal, and the
33            means by which these problems can be minimized;
34   
35   and
36   
37       BE IT FURTHER RESOLVED that the study group is requested to
38   report its findings, including a draft of proposed legislation
39   for income tax simplification, to the Legislature at least
40   twenty days before the convening of the Regular Session of
41   2000; and

 
 
 
 
 
 
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 1   
 2       BE IT FURTHER RESOLVED that certified copies of this
 3   Concurrent Resolution be transmitted to the Speaker of the
 4   House of Representatives, the President of the Senate, the
 5   Director of Taxation, and the Director of the Legislative
 6   Reference Bureau.
 7 
 8 
 9 
10                         OFFERED BY:  ____________________________