Honolulu, Hawaii



RE:    H.B. No. 1190

       H.D. 1

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 1190, H.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to amend state income tax rates and provide tax relief for taxpayers whose income places them at or below the poverty level.


     Specifically, this measure:


     (1)  Eliminates the state income tax for taxpayers with taxable income of:


          (A)  $3,300 or less for single filers;


          (B)  $4,800 or less for head of household filers; and


          (C)  $6,600 or less for joint filers; and


     (2)  Amends the state income tax rates for taxpayers with taxable income greater than the amounts provided in paragraph (1).


     Your Committee received testimony in support of this measure from the LGBT Caucus of the Democratic Party of Hawaii, Rainbow Family 808, Americans for Democratic Action Hawaii, Hawaiian Community Assets, Hawaii Appleseed Center for Law and Economic Justice, League of Women Voters of Hawaii, Oahu County Democrats, and numerous individuals.


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


     Your Committee finds that Hawaii is one of only fifteen states that currently impose a tax on the income of those who are at or below the poverty level.  Your Committee further finds that eliminating the state income tax liability in the lowest tax brackets would help workers whose income places them at or below the poverty line.


     Your Committee has amended this measure by:


     (1)  Changing the effective date to July 1, 2035, 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 H.B. No. 1190, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1190, H.D. 1, 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,