Bill Text: HI HB1127 | 2024 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [HB1127 Detail]
Download: Hawaii-2024-HB1127-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1127 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. 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] $6,000
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] $4,500
in the case of a head of household (as defined in section 2(b) of the Internal
Revenue Code);
(C) [$2,200] $3,000
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] $3,000
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[.];
provided that on July 1, 2024, and every two years thereafter, the department shall increase the deduction amounts set forth in this subsection, to be effective the following January 1, by the same total percentage change over the most recent two year period in the Consumer Price Index for All Urban Consumers for Honolulu published by the Bureau of Labor Statistics of the federal Department of Labor; provided further that if the adjustment based on the Consumer Price Index for All Urban Consumers for Honolulu would result in lower deduction amounts, the department shall not decrease the deduction amounts, and the adjusted deduction amounts shall remain at the most recently established deduction amounts."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022.
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INTRODUCED BY: |
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Report Title:
Taxation; Standard Deduction Amounts; Inflationary Adjustments; Department of Taxation
Description:
Increases the standard deduction amounts for taxpayers for taxable years beginning after December 31, 2022. Requires biannual increases to the standard deduction amounts to match any increase in the Consumer Price Index for All Urban Consumers for Honolulu over the most recent two year period.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
