By Georgette Deemer, House Dir of Communications Feb 24, 2010
Honolulu, Hawaii. The House Committee on Finance this evening advanced major tax and revenue generation bills that propose to raise needed revenue for the state and to help balance the state budget as required by law.
The committee deferred bills that propose to raise the General Excise Tax and to raise income tax for higher-income individual taxpayers.
The committee voted to continue to transfer the Transient Accommodations Tax to the counties but capped the transfer amount at its current level for a period of five years. The bills now go to the chamber floor where the entire House will vote on them prior to the crossover to the Senate.
The major revenue generation bills passed by House Finance in the last few days and this evening include:
- HB1907 Relating to Taxation. Temporarily suspends the income tax net operating loss carryback deduction for losses generated in 2009 and 2010.
- HB1926 Relating to Department of Business, Economic Development and Tourism. Establishes the Department of Business, Economic Development, and Tourism Operation Special Fund for the operation of the department. Imposes a surcharge on the fees charged by certain departments for certain business- and commerce-related authorizations and services. Requires the deposit of the surcharge revenues, as well as $2 million annually from the Compliance Resolution Fund, into the special fund. Takes effect on July 1, 2010, and sunsets on June 30, 2015
- HB2598 Relating to Transient Accommodations Tax. Caps for five years the current level of the distribution of transient accommodations tax revenues to the counties.
- HB2850 Relating to the Liquor Tax. Temporarily increases the liquor tax rates during the period of 7/1/10 to 6/30/15.
- HB2852 Relating to the Insurance Premium Tax. Temporarily makes the insurance premium tax applicable to mutual benefit societies and health maintenance organizations.
- HB2866 Relating to Taxation. Retains the State's ability to "pick-up" the state death tax credit as it existed in the Internal Revenue Code before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.
- HB2867 Relating to Taxation. Repeals various income tax credits and deductions. Incorporates provisions of HB1588 which reduces tax credits allowable under chapters 235, 239, 241, and 431, HRS, for taxable years beginning on or after January 1, 2009 and ending before January 1, 2011.
- HB2877 Relating to Taxation. Temporarily suspends the exemption for certain amounts of gross income or proceeds from the general excise tax and requires the payment of the tax at a one per cent rate. Takes effect on 7/01/2010 and is repealed on 6/30/2015.
- HB2885 Relating to the Conveyance Tax. Temporarily suspends the distribution of a portion of the conveyance tax to the land conservation fund and rental housing trust fund. Reduces distribution to the natural area reserve fund.
- HB2887 Relating to Tobacco Settlement Moneys. Transfers temporarily to the general fund the portion of moneys from the Hawaii tobacco settlement special fund designated for the Hawaii tobacco prevention and control trust fund.
- HB2962 Relating to Taxation. Temporarily defers deductions against a taxpayer's net income tax liability for claims under the Technology Infrastructure Renovation Tax Credit and High Technology Business Investment Tax Credit between July 1, 2010, and June 30, 2013.
- HB2984 Relating to Tax Credits. Extends the tax credit for research activities for 1 year. Repeals remaining tax credit provisions of Act 221, Session Laws of Hawaii 2001.
To read the complete bill description, the bills are online at http://www.capitol.hawaii.gov under Bill Status and Documents. Type in the bill number for the status.