STAND. COM. REP. NO.  948

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 707

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 707 entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX,"

begs leave to report as follows:

     The purpose of this bill is to reduce the tax burden on Hawaii's taxpayers by establishing a refundable food tax credit for those with an adjusted gross income (AGI) of $70,000 or less per year.  Under this inversely graduated tax credit schedule, a taxpayer with an AGI of $17,500 or less can claim a tax credit of $300 while a taxpayer with an AGI between $50,001 and $70,000 can claim $75.

     The Department of Taxation testified in support of this bill.  The Tax Foundation of Hawaii offered comments.

     Your Committee has amended this bill by:

     (1)  Deleting the amount of the tax credit in each category to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 707, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 707, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair