Hawaii House Bill HR177

Hawaii 2025 Regular Session

• Introduced: 3/7/25
• Refer: 3/14/25
• Report Pass: 4/3/25
• Passed: 4/3/25

Caption

Requesting That The Tax Review Commission Consider Certain Goals For An Equitable, Efficient, And Adequate Tax Policy Structure In Its Deliberations.

Impact

The resolution outlines specific goals for the TRC to consider, including the maximization of benefits to Hawaii taxpayers and ensuring that both non-residents and visitors contribute to the tax system, potentially influencing how the state's tax policies shape economic interaction with tourists. It also stresses the importance of evaluating the effectiveness of tax credits and exemptions, particularly in relation to their impact on revenue collection.

Summary

House Resolution 177 (HR177) seeks to direct the Tax Review Commission (TRC) of Hawaii to focus on certain goals while evaluating the state's tax structure. This resolution is based on the authority granted to the TRC under Article VII, Section 3 of the Hawaii State Constitution, which mandates the commission to review and recommend modifications to the state’s tax policy. HR177 emphasizes the need for a tax system that is equitable, efficient, and adequate, addressing how the tax burden is distributed among taxpayers and ensuring sufficient revenue for government functions.

Contention

There may be points of contention surrounding the goals outlined in HR177, particularly regarding how the principles of equity, efficiency, and adequacy will be interpreted and applied. Stakeholders may differ on what constitutes a fair distribution of tax burdens and how best to ensure that tax policies do not disproportionately affect residents. The resolution's commitment to assessing the impacts of federal tax policies on local taxpayers may also invite debate about state versus federal tax responsibilities and the balance of economic benefits versus tax equity.