Bill Text: HI SB1091 | 2013 | Regular Session | Amended

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Bill Title: Itemized Income Tax Deductions

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2013-03-07 - Referred to FIN, referral sheet 30 [SB1091 Detail]

Download: Hawaii-2013-SB1091-Amended.html

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STAND. COM. REP. NO. 503

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1091

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1091 entitled:

 

"A BILL FOR AN ACT RELATING TO ITEMIZED INCOME TAX DEDUCTIONS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to exempt charitable contributions from the itemized deduction cap amounts established by Act 97, Session Laws of Hawaii 2011.

 

     Your Committee received testimony in support of this measure from the Office of the Governor; the Department of Taxation; the Department of Budget and Finance; Hawaii Substance Abuse Coalition; Lahaina Arts Association; Diamond Head Theatre; Hawaii Community Foundation; Hawaii Alliance of Nonprofit Organizations; Institute for Human Services; Maui Family YMCA; Bank of Hawaii; Honolulu Museum of Art; Catholic Charities Hawaii; American Cancer Society Cancer Action Network; University of Hawaii Foundation; Aloha United Way; PBS Hawaii; Hawaii Arts Alliance; the Conservation Council for Hawaii; The Nature Conservancy; Goodwill Industries of Hawaii, Inc.; Kilauea Drama and Entertainment Network; and fifteen individuals.

 

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

 

     Your Committee finds that Act 97, Session Laws of Hawaii 2011, established temporary cap amounts on itemized deductions for state income tax purposes.  Your Committee recognizes that the limitation on itemized deductions has resulted in a disincentive for taxpayers to contribute to charitable organizations.  This disincentive has caused a significant reduction in funding for charitable organizations throughout the State.  Your Committee further finds that this measure restores the incentive for taxpayers to make contributions to charitable organizations.

 

     Your Committee has amended this measure by:

 

     (1)  Making clarifying amendments to the provision exempting charitable contributions from the cap amounts on itemized deductions;

 

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

 

     (3)  Making technical nonsubstantive amendments for style and consistency.

 

     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. 1091, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1091, 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,

 

		____________________________ DAVID Y. IGE, Chair