STAND. COM. REP. NO.  523-10

 

Honolulu, Hawaii

                , 2010

 

RE:   H.B. No. 2594

      H.D. 2

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 2594, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO CONFORMITY OF THE HAWAII INCOME TAX LAW TO THE INTERNAL REVENUE CODE,"

 

begs leave to report as follows:

 

     The purpose of this bill is to amend Hawaii's income tax law by conforming it to changes made to the Internal Revenue Code for calendar year 2009.

 

     The Department of Taxation and Island Pacific Energy testified in support of this bill.  The Tax Foundation of Hawaii provided comments.

 

     Your Committee has amended this bill by:

 

     (1)  Adding language to conform judgments in disputed tax cases against the State to federal law by decreasing the interest rate on monies held by the Litigated Claims Fund to three percent; and

 

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2594, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2594, H.D. 2, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair