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House passes bill to State House leaders are touting a bill sent to the state Senate that substantially reduces payments for individuals and corporations who pre-pay their income taxes.
lower estimated taxes
Supporters say the measure
will help rouse the economyBy Pat Omandam
pomandam@starbulletin.com
House Bill 1996 lowers estimated income tax annual payments to 60 percent from 90 percent, enabling businesses to keep 30 percent more of that cash on hand, which in turn can stimulate the economy, said state Rep. Bob Nakasone, who introduced the bill.
Nakasone said the state Tax Department reported in 1998-1999 that corporations paid $78.7 million in estimated income taxes, of which $44.5 million was eventually refunded.
"If the rate is lowered from 90 percent to 60 percent, about $23.6 million would have remained in the hands of businesses, circulating through the economy, instead (of) sitting in the state's bank account collecting interest," Nakasone said.
The bill was among several hundred exchanged this week between the House and the Senate.
Some of the controversial measures making this first crossover deadline include a repeal and a reform of the state traffic camera project and two bills that would make Hawaii the second state in the nation, after Oregon, in passing death-with-dignity assisted-suicide legislation.
Other measures approved this week include:
>> Animal cruelty: Senate Bill 2062 , Senate Draft 1, requires veterinarians, and allows the public, to report known or suspected cases of animal cruelty to a Humane Society or law enforcement officer. Those who make such reports in good faith are given immunity from civil liability.
>> Tax amnesty: House Bill 2381 , House Draft 1, establishes a one-time tax amnesty period for delinquent taxpayers, beginning July 1 and ending Feb. 28, 2003.
Amnesty does not extend to any taxpayer under criminal investigation or charge for state tax matters. The waiver of any penalty, interest and cost of collection applies only if overdue tax is paid in full.
>> Watercraft down: All watercraft in Hawaii must have on board a properly functioning Emergency Position Indicating Radio Beacon or VHF-FM radio when watercraft is beyond one mile of shore, under state Senate Bill 2309 , Senate Draft 1.
Senators said the measure has the potential to drastically reduce search and rescue missions at sea because a certified radio or emergency beacon would immediately help authorities pinpoint the location of the watercraft.
>> Hanai adoption: Senate Bill 2043 , Senate Draft 1, establishes an advisory task force to study the consequences of integrating the practice of hanai into statutory law. A task force would propose draft legislation for the 2004 state Legislature.
>> Political activities: House Bill 2672, House Draft 2 , bans solicitation of political contributions in rooms and buildings where official government business is conducted. The proposed law, however, exempts public school buildings, a popular rental site for political fund-raisers.
>> OHA retirement: Office of Hawaiian Affairs trustees would be eligible to join and receive the same retirement benefits offered to other state elected officials under Senate Bill 2477, Senate Draft 2.
Legislators said there is inequity in treatment of OHA trustees who serve their constituency as other elected officials do. As a result, they should be allowed to accrue retirement benefits just like any other elected state or county officials. OHA staff already are part of the Employees' Retirement System.
>> Break room: Senate Bill 2967 requires employers to provide employees with at least a 15-minute break for eight hours of work, unless already required in a union contract. Legislators believe requiring a break will increase worker productivity by lessening inattention and industrial accidents.
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