Bill Text: HI SR30 | 2016 | Regular Session | Introduced

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Bill Title: Tax Review Commission; Income Tax Credits, Exclusions, Deductions

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-04-07 - Report and Resolution Adopted. [SR30 Detail]

Download: Hawaii-2016-SR30-Introduced.html

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THE SENATE	S.R. NO.	30
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

SENATE RESOLUTION

 

 

REQUESTING THE TAX REVIEW COMMISSION TO EVALUATE INCOME TAX CREDITS, EXCLUSIONS, AND DEDUCTIONS.

 

 

 

     WHEREAS, it is anticipated that a Tax Review Commission will be convened pursuant to article VII, section 3, of the Hawaii State Constitution; and

 

     WHEREAS, the basic duties of the Tax Review Commission are to evaluate the State's tax structure and recommend revenue and tax policy; and

 

     WHEREAS, the various credits, exclusions, and deductions under the state income tax law represent major components of the State's tax structure and tax policy; and

 

     WHEREAS, the Legislature finds that the current income tax credits, exclusions, and deductions require evaluation to determine their tax expenditures, benefits, merit, and necessity; and

 

     WHEREAS, the Legislature further finds that tax expenditures from the credits, exclusions, and deductions reduce revenues to the State; and

 

     WHEREAS, the reduction of revenues requires ordinary taxpayers who do not benefit from the credits, exclusions, or deductions to compensate for the reduced revenues; and

 

     WHEREAS, alternatively, funding for important state programs must be curtailed; and

 

     WHEREAS, the Legislature further finds that good tax policy requires the equal treatment of similarly-situated taxpayers for the sake of equity and efficiency; and

 

     WHEREAS, when certain taxpayers receive special benefits to the detriment of others, it may generate resentment that leads to the loss of the general public's confidence in fair treatment by the state government; and

 

     WHEREAS, the Legislature, however, finds that certain tax credits, exclusions, and deductions are worthy of continuation for equity, efficiency, and economic and social policy; and

 

     WHEREAS, thus, the Legislature finds that an independent, objective evaluation by experts of existing income tax credits, exclusions, and deductions is necessary to assist the Legislature in identifying those credits, exclusions, and deductions that should be retained, modified, or repealed; and

 

     WHEREAS, the 2005-2007 Tax Review Commission reviewed certain general excise and use tax exemptions and deductions, and the results were immensely helpful to subsequent Legislatures; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-eighth Legislature of the State of Hawaii, Regular Session of 2016, that the Tax Review Commission is requested to conduct or commission a study evaluating all or certain state income tax credits, exclusions, and deductions; and

 

     BE IT FURTHER RESOLVED that, if all income tax credits, exclusions, and deductions cannot be evaluated because of resource or time constraints, the Tax Review Commission is requested to evaluate those that result in the most significant loss of state general fund revenues; and

 

     BE IT FURTHER RESOLVED that the Tax Review Commission is requested to submit its findings and recommendations to the Legislature and Governor, along with the Tax Review Commission's evaluation pursuant to article VII, section 3, of the Hawaii State Constitution; and

 

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to Chairperson of the Tax Review Commission.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Tax Review Commission; Income Tax Credits, Exclusions, Deductions