Bill Text: HI HB1181 | 2016 | Regular Session | Amended

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Bill Title: Income Tax; Basic Standard Deduction; Personal Exemption

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2015-12-17 - Carried over to 2016 Regular Session. [HB1181 Detail]

Download: Hawaii-2016-HB1181-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	1181
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.  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] $5,500, 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] $4,015, in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

         (C)  [$2,200] $2,750, 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] $2,750, 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 2.  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:  Ascertain the number of exemptions which the individual can lawfully claim under the Internal Revenue Code, 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, and multiply that number by [$1,144,] $2,288, 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 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2030, and shall apply to taxable years beginning after December 31, 2014; provided that the amendments made to section 235-54(a), Hawaii Revised Statutes, by section 2 of this Act shall not be repealed when section 235-54, Hawaii Revised Statutes, is reenacted on June 30, 2015, pursuant to section 3 of Act 14, Special Session Laws of Hawaii 2009.

 

 

Report Title:

Income Tax; Basic Standard Deduction; Personal Exemption

 

Description:

Amends the state income tax law by changing the amounts of the basic standard deduction and personal exemption.  (HB1181 HD1)

 

 

 

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