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REPORT OF THE
COMMITTEE ON PLANNING
February 11, 1981
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Planning to which was. referred:
, :. Comm. 93: AMENDMENT TO CAMPAIGN SPENDING LAW
From Councilwoman Helene H. Hale dated February 3 , 1981,
proposing that the Council go on record to request the
State Legislature to amend the present campaign spending
law to simplify the forms required to be filed for tax
deductions and lists the reasons for her recommendation;
recommends Council support the proposed amendments to Chapter 11,
Section 226, Hawaii Revised Statutes, relating to tax deductions.
(Copy of proposed bill attached. )
PC REPORT NOe 15
FEB 1 8
ADOPTED: 1981
A BILL FOR AN. ACT
PROPOSING AN AMENDMENT TO CHAPTER 11, SECTION 226, HAWAII REVISED STATUTES,
TO SIMPLIFY THE EVIDENCING OF CAMPAIGN CONTRIBUTIONS AND THE TIMELY NOTIFICATION
TO THE DONORS BY THE CANDIDATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
Section 1. Section 11-226 of the Hawaii Revised Statutes, Relating to
Elections, is amended to read as follows:
Section 11-226. Tax deductions. (a) As a condition of allowing an individual
to take a tax deduction for campaign contributions to a candidate pursuant to
section 235-7 (g) (2), a candidate shall have filed an affidavit with the commission
prior to or simultaneous with the filing of his organizational report stating
that he shall not exceed the expenditure limit for his respective office as set
forth in section 11-209.
(b) The affidavit shall remain effective until the termination of the central
committee of the candidate or the opening of filing for the next succeeding
election for the office held or sought at the time of filing of the affidavit
whichever occurs first. An affidavit filed under this section may not be
rescinded.
(c) The director of taxation shall not allow any individual or married
couple filing jointly to take a deduction against any tax due, pursuant to
section 235-7 (g) (2) , for any contribution to a candidate for statewide or county
office, who has not filed an affidavit as provided in this section.
(d) The commission shall forward a certified copy of any affidavit filed
under this section to the director of taxation.
[(e) The director of taxation shall only distribute to candidate who have
filed an affidavit with the commission pursuant to this section a supply of
official tax deduction receipt forms which state in bold face type that:
(1) A contributor who is given a receipt form is eligible to receive an
income tax deduction in an aggregate amount not greater than $500
for any election year; and
SIllt
(2) That the candidate to whom he has contributed has agreed to abide by
campaign expenditure limits.]
[(f)] (e) The director of taxation shall only allow an individual or
married couple filing jointly to take an income tax deduction, pursuant to
section 235-7 (g) (2) , for any contribution to a candidate for a statewide or
county office, if [an official tax deduction] a receipt [form] is attached to
the state income tax return. Cancelled checks or copies of same shall be
considered adequate receipt forms.
[(g) A candidate who does not file an affidavit with the commission. pursuant
to this section shall not issue an official tax deduction report form, or any
facsimile thereof, to any of his contributors.]
[(h)] (f) If a candidate has not filed an affidavit pursuant to this section,
he shall inform all contributors to his campaign in writing, immediately upon
receipt of the contribution, that they are not entitled to count their contributions
to him for purposes of taking a tax deduction under this section.
Section 2. This Act shall take effect upon its approval.
INTRODUCED BY:
110
JUSTIFICATION SHEET
February 11, 1981
SPONSORING GROUP: Hawaii County Council
TITLE: A BILL FOR AN ACT RELATING TO STATE CAMPAIGN SPENDING LAW
PURPOSE: To remove the director of taxation from distributing
official tax receipt forms to candidates. Contributor's
receipt or cancelled check be used instead for tax
deduction.
MEANS: Amend subsections (e) , (f) , (g) , (h) , Section 11-226,
Hawaii Revised Statutes, to eliminate the proviso that
the candidate must use the receipt form distributed
by the director of taxation. Chapter 235-7 (g) (2) ,
INCOME TAX LAW, is adequate for the administration of
the tax deduction by the tax director.
A candidate who doesnot file an affidavit with the
commission must inform the contributor immediately
upon receipt of a contribution that their contribution
will not be tax deductible.
JUSTIFICATION: Requirement to use the receipt form distributed by the
director of taxation to file for a tax deduction, causes
a duplication of effort by the candidate or the candidate's
campaign committee to send another duplicate receipt to
each contributor.
The contributor's receipt or cancelled check should be
adequate for filing for a tax deduction. The tax director
has a file listing the candidates who have filed their
affidavits with the commission enabling the department
to determine which candidate's contributor is entitled
to a tax deduction.
The Internal Revenue Service recognizes the receipt or
cancelled check, or in absence of the above, even accepts
fundraiser stubs, providing all the necessary information
is on the stub.
GENERAL FUND: None.
OTHER FUND: None.
I
1110
REPORT OFTHb
COMMITTEE ON PLANNING
February 11, 1981
Chairman and Members
Hawaii County Council
Hilo, Hawaii
Your Committee on Planning submits for approval Committee
Reports dated February 11, 1981 and numbered 15 thru 17 .
• TAKASHI DOMINGO, CH4 N
A001"
'NCER SCHUTTE, VICE CHR. JA ► i, L. K. DAHLBERG, MEMBERS
4JA041
FRANK DE LUZ, III, MEMBER -T IO FUJII, MEMBER
24.4, /I 1
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WILLIAM S. AWAHA'ri , MEMBER MERL' K. LAI, MEMBER
Report No.
File No, .....
B• No .e...,.
Date: 981