STAND. COM. REP. NO. 2210

Honolulu, Hawaii

RE: S.B. No. 1208

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 1208 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the low-income household renter's tax credit.

Your Committee received testimony in support of this measure from Americans for Democratic Action Hawaii, Democratic Party of Hawai'i, AARP Hawaiʻi, and Aloha United Way.

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

Your Committee finds that Hawaii has the second highest housing costs in the nation and that the fair market rent in the State increased by sixty-seven percent between 2005 and 2015. This puts significant strain on the State's residents, especially those making at or close to minimum wage. This measure aims to reduce this burden by raising the tax credit for low-income renters within the State.

Your Committee has amended this measure by:

(1) Inserting language raising the credit value above $100 by using tax brackets for individuals and different categories of households;

(2) Annually adjusting the income threshold and credit amounts for inflation, based on the consumer price index;

(3) Making the measure apply to taxable years beginning after December 31,2023; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1208, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1208, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair