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Legislative update: Proposal for temporary GET increase dead

April 09, 2011

Friday, April 8, was Second Decking, the day when bills in the non-originating house must be in their final form. Monday, April 11, and Wednesday, April 13, are recess days, and the legislators will use that time to prepare for Second Crossover on April 14.

HB793 – GET Exemption and Temporary Increase: The Senate Committee on Ways & Means gutted HB793 and floated an SD1 draft, which would suspend certain GET exemptions (similar language to HB799 that was “held” in committee last week), temporarily increase the GET by 1%, but provide for food and other tax credits, and double the standard deduction. During decision making, Sen. Donovan Dela Cruz requested an amendment that would remove all of the GET increase language from the bill. The amendment passed with 10 ayes and 4 noes (Chair Ige, Sens. Chun Oakland, Fukunaga and Slom).  The version of HB793 that passed out of committee only contains the exemption suspension; GET increase language is considered dead.

Priority Bills:

EUTF and CB Funding Vehicle (SB1061,SD1,HD1) - passed House FIN, with amendments, pending 3rd Reading

EUTF Benefits Negotiable (SB1078)  and EUTF Omnibus (SB1066)

  • SB1078,SD2,HD1 passed FIN, with no amendments, pending 3rd Reading
  • SB1066,SD1 was not heard by FIN and is considered dead for this session

Creation of BU14 for State Law Enforcement Officers (SB1065,SD1,HD1) - passed FIN with amendments, pending 3rd Reading

State Budget (HB200, HD1) - passed Senate WAM, with amendments, pending 3rd Reading

Takeaway Bills:

ERS OT Calculation (SB1269,SD2,HD2), House FIN passed, with amendments, pending 3rd Reading

  • HD2 amends the bill to only affect prospective employees

Medicare Part B (HB1041,HD2,SD2), passed WAM, with amendments, pending 3rd Reading

  • SD2 limits the contributions paid by the State to the lowest income level reimbursement; eliminates the reimbursement for prospective employees

Pension Tax (HB1092 and SB570), passed WAM, FIN, respectively; pending 3rd Reading

  • HB1092 HD2,SD2: SD2 removes the federal adjusted gross income rates, taxes only pension income higher than $100k
  • SB570,HD1: The House FIN gutted SB570 and inserted language to tax Pensions, at the same rates as a former version of HB1092 -- $100k/$150k/$200k for single/head of household/joint filers.  Also makes the deduction for state taxes paid inoperative for corporations and certain taxpayers; limits the amount of itemized deductions that may be claimed; and delays the standard deduction and personal exemption increases approved under Act 60, SLH 2009, but makes the increases permanent.

 

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