STAND. COM. REP. NO. 1556
RE: H.B. No. 133
Honorable Ronald D. Kouchi
President of the Senate
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Your Committee on Ways and Means, to which was referred H.B. No. 133, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CAPITAL GAINS,"
begs leave to report as follows:
The purpose and intent of this measure is to increase the capital gains tax threshold from 7.25 percent to nine percent.
Your Committee received testimony in support of this measure from Hawaii Children's Action Network Speaks!, Americans for Democratic Action, Young Progressives Demanding Action, Planned Parenthood Votes Northwest and Hawaii, League of Women Voters Hawaii, Hawaii Budget and Policy Center, Foresight/Policy Analysis, Advocacy Coalition, Imua Alliance, Democratic Party of Hawaii Education Caucus, PHOCUSED, Hawaii State Teachers Association, Democratic Party of Hawaii Labor Caucus, Hawaii Alliance for Progressive Action, Neighborhood Place of Puna, and numerous individuals.
Your Committee received testimony in opposition to this measure from Chamber of Commerce Hawaii and seven individuals.
Your Committee received written comments on this measure from the Department of Taxation, Hawaii Association of Realtors, Tax Foundation of Hawaii, and Grassroot Institute of Hawaii.
Your Committee finds that increasing the capital gains tax threshold for individuals and corporations will create additional revenue for the State to help address houselessness, domestic violence, mental illness, and other issues that have been exacerbated by the coronavirus disease 2019 pandemic.
Your Committee has amended this measure by:
(1) Amending section 235-71.5, Hawaii Revised Statutes, to increase the capital gains tax threshold for corporations from four percent to five percent; and
(2) Changing the effective date to July 1, 2021.
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. 133, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 133, 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,
DONOVAN M. DELA CRUZ, Chair