STAND. COM. REP. NO. 1780

 

Honolulu, Hawaii

                

 

RE:    H.B. No. 954

       H.D. 2

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 954, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend the State's tax laws to provide tax relief for working families.

 

     More specifically, the measure:

 

     (1)  Increases the amounts for the income tax brackets and personal exemption and standard deduction amounts for tax year 2023;

 

     (2)  Adjusts annually for tax years beginning after December 31, 2023, the income tax brackets and personal exemption and standard deduction amounts by a cost‑of‑living adjustment factor;

 

     (3)  Amends the taxable income brackets and income tax rates for each filing status for taxable years beginning after December 31, 2022; and

 

     (4)  Changes the amount of the state earned income tax credit to an unspecified percentage of the federal earned income tax credit allowed based on an individual's federal income tax return.

 

     Your Committee received written comments in support of this measure from the Office of the Governor, Hawaii State Teachers Association, Early Childhood Action Strategy, Better Tomorrows, Holomua Collaborative, Parents and Children Together, Democratic Party of Hawaii Education Caucus, Aloha United Way, Hawaii Children's Action Network Speaks!, Progressive Democrats of Hawaii, and numerous individuals.

 

     Your Committee received written comments on this measure from the Department of Taxation, Department of Budget and Finance, Tax Foundation of Hawaii, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Children's Action Network Speaks!, Imua Alliance, Grassroot Institute of Hawaii, and two individuals.

 

     Your Committee finds that the tax relief provided by this measure for low- to moderate-income taxpayers will allow the State's residents to retain more of their income, and will help address cost of living increases.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting section 5 of the measure, which would have amended the amount of the State's earned income tax credit; and

 

     (2)  Making the measure effective upon its approval and applicable to taxable years beginning after December 31, 2022.

 

     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. 954, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 954, H.D. 2, 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