Bill Text: HI HB1091 | 2016 | Regular Session | Amended
Bill Title: Income Tax; Standard Deduction; Personal Exemption
Spectrum: Partisan Bill (Democrat 35-0)
Status: (Engrossed - Dead) 2015-12-17 - Carried over to 2016 Regular Session. [HB1091 Detail]
Download: Hawaii-2016-HB1091-Amended.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1091 |
|
TWENTY-EIGHTH LEGISLATURE, 2015 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii's economy is slowly recovering from the recent economic downturn. However, many of Hawaii's working families are having difficulty keeping up and making ends meet. The legislature finds that action must be taken to further facilitate the State's economic recovery.
The purpose of this Act is to amend the state income tax by:
(1) Increasing the standard deduction and allowable personal exemption amounts; and
(2) Increasing the number of exemptions that may be claimed by taxpayers who are sixty-five years of age or older and meet certain income requirements.
SECTION 2. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Section 63 (with respect to taxable income defined) of the Internal Revenue Code shall be operative for the purposes of this chapter, subject to the following:
(1) Section 63(c)(1)(B) (relating to the additional standard deduction), 63(c)(1)(C) (relating to the real property tax deduction), 63(c)(1)(D) (relating to the disaster loss deduction), 63(c)(1)(E) (relating to the motor vehicle sales tax deduction), 63(c)(4) (relating to inflation adjustments), 63(c)(7) (defining the real property tax deduction), 63(c)(8) (defining the disaster loss deduction), 63(c)(9) (defining the motor vehicle sales tax deduction), and 63(f) (relating to additional amounts for the aged or blind) of the Internal Revenue Code shall not be operative for purposes of this chapter;
(2) Section 63(c)(2) (relating to the basic standard deduction) of the Internal Revenue Code shall be operative, except that the standard deduction amounts provided therein shall instead mean:
(A) [$4,400] $5,200 in the case
of:
(i) A joint return as provided by section 235-93; or
(ii) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);
(B) [$3,212] $3,796 in the case
of a head of household (as defined in section 2(b) of the Internal Revenue
Code);
(C) [$2,200] $2,600 in the case
of an individual who is not married and who is not a surviving spouse or head
of household; or
(D) [$2,200] $2,600 in the case
of a married individual filing a separate return;
(3) Section 63(c)(5) (limiting the basic standard deduction in the case of certain dependents) of the Internal Revenue Code shall be operative, except that the limitation shall be the greater of $500 or the individual's earned income; and
(4) The standard deduction amount for nonresidents shall be calculated pursuant to section 235-5."
SECTION 3. Section 235-54, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) In computing the taxable income of any individual, there shall be deducted, in lieu of the personal exemptions allowed by the Internal Revenue Code of 1986, as amended, and except as provided in subsection (c), personal exemptions computed as follows:
(1) Ascertain the number of
exemptions which the individual can lawfully claim under the Internal Revenue
Code[, add];
(2) Add an additional
exemption for the taxpayer or the taxpayer's spouse who is sixty-five years of
age or older within the taxable year[,];
(3) Add an exemption for individuals described in paragraph (2) whose federal adjusted gross income is less than:
(A) $24,000 for a taxpayer filing a single return or a married person filing separately;
(B) $36,000 for a taxpayer filing as a head of household; and
(C) $48,000 for a taxpayer filing a joint return or as a surviving spouse;
(4) Add an exemption for individuals described in paragraph (2) whose federal and state adjusted gross income is less than:
(A) $30,000 for a taxpayer filing a single return or a married person filing separately;
(B) $45,000 for a taxpayer filing as a head of household; and
(C) $60,000 for a taxpayer filing a joint return or as a surviving spouse; and
(5) [multiply] Multiply
that number by [$1,144,] $2,144, for taxable years beginning
after December 31, 1984.
A nonresident shall prorate the personal exemptions on account of income from sources outside the State as provided in section 235-5. In the case of an individual with respect to whom an exemption under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, the personal exemption amount applicable to such individual under this subsection for such individual's taxable year shall be zero."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2030, and shall apply to taxable years beginning after December 31, 2015; provided that the amendments made to section 235-54(a), Hawaii Revised Statutes, by section 3 of this Act shall not be repealed when that section is reenacted on June 30, 2015, pursuant to section 3 of Act 14, Special Session Laws of Hawaii 2009.
Report Title:
Income Tax; Standard Deduction; Personal Exemption
Description:
Increases the standard deduction and allowable personal exemption amounts for all filing statuses. Increases the number of exemptions that may be claimed by taxpayers who are 65 years of age or older and meet certain income requirements. (HB1091 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
