Honolulu, Hawaii



RE:    S.B. No. 3029

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 3029 entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to reduce or eliminate the income tax burden on Hawaii taxpayers who have the lowest incomes.


     Your Committee received testimony in support of this measure from Americans for Democratic Action, Hawaii Appleseed Center for Law and Economic Justice, League of Women Voters of Hawaii, the Young Women's Christian Association of Oahu, Young Progressives Demanding Action, and sixteen individuals.


     Your Committee received comments on this measure from the Department of Taxation and the Tax Foundation of Hawaii.


     Your Committee finds that Hawaii residents have the highest costs of living and housing in the nation, and many residents, even when employed, struggle to make ends meet.  Your Committee recognizes that Hawaii is one of only fifteen states in the nation that impose an income tax on individuals at or below the poverty level.  In contrast, most of the other states either provide a tax refund or impose no state income tax on the poorest of the poor.


     Your Committee believes that it is appropriate to provide targeted tax relief to those with the lowest incomes in the State.  However, your Committee believes that this measure requires further review and examination.


     Accordingly, your Committee has amended this measure by:


     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and


     (2)  Making technical nonsubstantive changes for purposes of clarity, consistency, and style.


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3029, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3029, S.D. 1, and be placed on the calendar for Third Reading.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,