Bill Text: HI SB2255 | 2022 | Regular Session | Amended
Bill Title: Relating To The Mortgage Interest Deduction.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2022-02-17 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2255 Detail]
Download: Hawaii-2022-SB2255-Amended.html
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THE SENATE |
S.B. NO. |
2255 |
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THIRTY-FIRST LEGISLATURE, 2022 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE MORTGAGE INTEREST DEDUCTION.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to make inoperative the mortgage interest deduction for second homes under Hawaii income tax law and transfer funds equivalent to the amount derived from the suspension of the deduction into the general fund.
SECTION 2. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:
"(j) Section 163 (with respect to interest) of the Internal Revenue Code shall be operative for the purposes of this chapter, except that the following provisions shall not be operative for the purposes of this chapter:
(1) Section 163(d)(4)(B) (defining net investment income to exclude dividends);
(2) Section 163(e)(5)(F) (suspension of applicable high-yield discount obligation (AHYDO) rules);
(3) Section
163(h)(3)(F) (limiting mortgage interest); [and]
(4) Section 163(h)(4)(A)(i)(II)
(definition of qualified residence for home mortgage interest deduction);
(5) Section
163(h)(4)(A)(ii)(II) (treatment of home mortgage interest deduction for married
individuals filing separately); and
[(4)] (6) Section 163(i)(1) as it applies to debt
instruments issued after January 1, 2010 (defining AHYDO)."
SECTION 3. The department of taxation shall annually calculate the amount of state revenue gained in the previous taxable year by making non-operative section 163(h)(4)(A)(i)(II) and section 163(h)(4)(A)(ii)(II) of the Internal Revenue Code of 1986, as amended, and, following this calculation, by September 1, shall report the amount to the director of finance.
SECTION 4. The department of budget and finance, in consultation with the department of taxation, shall submit a report on the administration of this Act to the legislature no later than twenty days prior to the convening of the 2023, 2024, 2025, and 2026 regular sessions.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2021.
Report Title:
Income
Tax; Mortgage Interest Deduction
Description:
Eliminates the mortgage interest deduction for second homes under Hawaii income tax law. Requires the Department of Taxation to calculate the savings and transfer an equivalent amount of income taxes to the Director of Finance for deposit into the general fund. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
