Bill Text: HI HR127 | 2013 | Regular Session | Introduced

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Bill Title: Taxation; Study

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-04-12 - Resolution adopted in final form. [HR127 Detail]

Download: Hawaii-2013-HR127-Introduced.html

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HOUSE OF REPRESENTATIVES	H.R. NO.	127
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

HOUSE RESOLUTION

 

 

requesting a Study OF the fairness of hawaii taxation law with regard to itemized deductions, especially in light of the recent enactment of the American taxpayer relief act of 2012.

 

     WHEREAS, on June 9, 2011, the Governor of the State of Hawaii approved Act 97, Session Laws of Hawaii 2011, which addressed deductions on Hawaii State income tax returns; and

 

     WHEREAS, the aforementioned Act 97 placed permanent limitations on who may make certain itemized deductions for all taxable years commencing after 2010; and

 

     WHEREAS, the aforementioned Act 97 also placed temporary limitations on the amounts of itemized deductions that a person may make for taxable years commencing after 2010 and ending before 2016; and

 

     WHEREAS, on January 2, 2013, the President of the United States approved the American Taxpayer Relief Act of 2012; and

 

     WHEREAS, while addressing a broad array of taxation issues, the Taxpayer Relief Act also implements its own phase-outs and limitations on itemized deductions; and

 

     WHEREAS, the taxation law language of the Hawaii Revised Statutes normally adopts the language of the Internal Revenue Code, except to the extent that Hawaii lawmakers choose to insert different language into the Statutes; and

 

     WHEREAS, itemized deductions allowable under the Internal Revenue Code include such items as:

 

(1)  Medical and Dental Expenses;

(2)  State income taxes;

(3)  Sales Taxes;

(4)  Real Estate Taxes;

(5)  Personal Property Taxes;

(6)  Home Mortgage Interest;

(7)  Mortgage Insurance Premiums;

(8)  Investment Interest;

(9)  Charitable Gifts;

(10) Casualty and Theft Losses;

(11) Job Expenses;

(12) Unreimbursed Employee Expenses;

(13) Tax Preparation Fees; and

(14) Gambling Losses; and

 

     WHEREAS, the Governor and members of the Legislature are the policymakers who have the discretion, through the passage of laws, to increase or decrease the availability of the use of itemized deductions on state income tax returns; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, that the Department of Taxation is requested to study the fairness of Hawaii taxation law with regard to itemized deductions, especially in light of the recent enactment of the American Taxpayer Relief Act of 2012; and

 

     BE IT FURTHER RESOLVED that, more specifically, the authors of the study are requested to consider:

 

(1)  The repeal of Act 97, Session Laws of Hawaii 2011, retroactive to all taxable years commencing after 2010;

(2)  The feasibility of bringing current Hawaii taxation law regarding itemized deductions into greater conformity with the language of the Internal Revenue Code;

(3)  The impact of current Hawaii taxation law's impact on those who take itemized deductions, with a particular emphasis on those who take itemized deductions for:

     (A)  Casualty and Theft Losses;

     (B)  Gambling Losses;

     (C)  Investment Interest; and

     (D)  Medical and Dental Expenses; and

     (4)  Any other relevant factors; and

 

     BE IT FURTHER RESOLVED that the Department of Taxation is requested to submit a report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2014, containing the results of the study, including any proposed legislation; and

 

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Director of Taxation.

 

 

 

OFFERED BY:

_____________________________ (BY REQUEST)

 

Report Title:

Taxation; Study