STAND. COM. REP. NO.  1515-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2890

      S.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2890, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO APPLICATION OF THE INTERNAL REVENUE CODE TO HAWAII INCOME TAX LAW,"

begs leave to report as follows:

The purpose of this measure is to clarify that references to "estate taxes" in the Internal Revenue Code shall refer to both the estate and transfer tax imposed by Chapter 236D, Hawaii Revised Statutes (HRS), and the estate and generation-skipping tax imposed by Chapter 236E, HRS, as applicable.

The Department of Taxation supported this measure.  Tax Foundation of Hawaii commented on this measure.

     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 S.B. No. 2890, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

SYLVIA LUKE, Chair