STAND. COM. REP. NO. 225

Honolulu, Hawaii

, 2005

RE: H.B. No. 727

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 Economic Development & Business Concerns, to which was referred H.B. No. 727 entitled:

"A BILL FOR AN ACT RELATING TO A NET INCOME TAX CREDIT FOR FOOD, MEDICAL SERVICES, AND NON-PRESCRIPTION DRUGS,"

begs leave to report as follows:

The purpose of this bill is to assist lower income families by providing a tax credit for the purchases of food, medical services, and non-prescription drugs.

The Governor and Department of Taxation testified in support of this measure. The Tax Foundation of Hawaii provided comments.

Your Committee has amended this bill by:

(1) Clarifying that the tax credit is for excise taxes paid on purchases of food, medical services, and non-prescription drugs;

(2) Removing the provision that prohibited multiple exemptions because of deficiencies in vision, hearing, or other disability; and

(3) Making other technical, nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 727, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 727, H.D. 1, and be referred to the Committee on Health.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

 

____________________________

ROBERT N. HERKES, Chair