Bill Text: HI HB1314 | 2021 | Regular Session | Amended
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-11 - Recommitted to FIN with Representative Ward voting aye with reservations; none voting no and Representative(s) Matsumoto, Mizuno excused. [HB1314 Detail]
Download: Hawaii-2021-HB1314-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1314 |
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THIRTY-FIRST LEGISLATURE, 2021 |
H.D. 2 |
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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:
PART I
SECTION 1. The legislature finds that real property tax is a relatively stable income source that is easy to collect and difficult for taxpayers to avoid. Real property tax is collected whether the owner is located in the State or not, and real property taxes paid can potentially reduce the federal tax burden for taxpayers in Hawaii. However, the legislature notes that Hawaii is one of fourteen states in the nation where property taxes are not levied by the State but instead levied by the counties. Due to this, the State's share of general revenues from its own sources, which includes revenue from the State and each county, is 74.7 per cent, well above the national average of 55.2 per cent. In addition, the State's share of combined State and local government expenditures is 79.8 per cent, significantly above the national average of 43.7 per cent. Despite the stability of real property taxes as an income source, Hawaii's property tax share of general revenue is 12.2 per cent, well below the national average of 21.6 per cent.
The legislature further finds that according to a 2017 report by the department of business, economic development, and tourism, it was estimated that taxpayers residing in the State contributed 67.8 per cent of real property taxes collected, while those not residing in the State contributed roughly thirty-two per cent. With real property taxes only contributing roughly twelve per cent of the entire state budget and the stability of real property taxes, there is merit in transitioning away from the State's reliance on the revenue gained from income tax and instead move toward receiving revenue from real property taxes, which will provide for a more stable source of income that would not be disrupted during a pandemic.
While the legislature believes that the tax burden should be shifted to real property taxes, the legislature also believes that a fair assessment of homeowner exemptions is needed to offset the burden of increasing real property taxes. The first step in this process should be to take away the portion of transient accommodations tax revenues currently allocated to the counties and instead allow each county to impose a surcharge on transient accommodations tax, under certain conditions. This transition of the counties away from relying on transient accommodations taxes would encourage counties to increase property taxes. Not providing transient accommodations taxes to the counties would then allow the State to absorb a gradual reduction in individual income taxes for all tax brackets. In addition, the reduction of income tax revenue would be replaced with the portion of new revenue derived from the increase of real property tax rates that the counties would collect and then remit to the State in exchange for being able to impose a surcharge on the transient accommodations tax. Reducing income taxes and expanding property exemptions would offset the increase in real property taxes and result in a fair and balanced impact to all taxpayers and property owners and also provide financial security and stability to the State's most vulnerable working class and households who are renters.
The legislature believes that, over time, the approaches in this Act will have a positive impact on asset limited taxpayers who have housing challenges and income constraints. In addition, this Act provides an economic solution to help lessen the financial burden of the State and its taxpayers, improve the cost of living, increase the housing supply, and provide replacement revenues to counties that adopt certain ordinances.
Accordingly, the purpose of this Act is to:
(1) Authorize each county to levy a county surcharge on transient accommodations tax if the county satisfies certain real property tax requirements and require each county that adopts a surcharge to remit certain real property tax revenues to the State;
(2) Repeal the allocation of transient accommodations tax revenue to the counties and make conforming amendments;
(3) Beginning January
1, 2031, require certain taxpayers who reside in a county that adopted an ordinance
to establish a surcharge on transient accommodations tax to file an information
return;
(4) Establish a landlord low-income tenant tax credit, residential circuit breaker tax credit, and real property tax credit for those who reside in a county that adopted an ordinance to establish a surcharge on transient accommodations tax; and
(5) Beginning with taxable years after December 31, 2021, gradually implement new individual income tax and corporation income tax brackets and rates in three‑year intervals for taxpayers who reside in a county that adopted an ordinance to establish a surcharge on transient accommodations tax.
PART II
SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
"§46- County
surcharge on transient accommodations tax. (a)
Each county may establish a surcharge on
transient accommodations tax at the rate enumerated in section 237D-
and shall do so by ordinance; provided that:
(1) No ordinance shall
be adopted until the county has conducted a public hearing on the proposed ordinance;
and
(2) No county shall
establish a surcharge pursuant to this subsection unless it adopts the requirements
of subsection (c).
Notice of the public hearing required under paragraph
(1) shall be published in a newspaper of general circulation within the county
at least twice within a period of thirty days immediately preceding the date of
the hearing.
(b) A county electing to exercise the
authority granted under this section shall notify the director of taxation within
ten days after the county has adopted a surcharge on transient accommodations tax
ordinance and the director of taxation shall levy, assess, collect, and otherwise
administer the county surcharge on transient accommodations tax.
(c) Before establishing a surcharge on transient
accommodations tax, a county shall adopt an ordinance to:
(1) Increase the real property
tax rates on all real property tax classifications as follows:
(A) Beginning
January 1, 2022, no
less than twenty per cent from the real property tax rate as of December 31,
2021;
(B) Beginning
January 1, 2025, no
less than twenty per cent from the real property tax rate as of January 1,
2022;
(C) Beginning
January 1, 2028, no
less than twenty per cent from the real property tax rate as of January
1, 2025; and
(D) Beginning
January 1, 2031, no
less than twenty per cent from the real property tax rate as of January
1, 2028;
provided that this paragraph
shall not apply to real property classified as conservation property; provided further
that each county shall remit to the director of finance the amounts received pursuant
to this paragraph; provided further that of the amounts received pursuant to
this paragraph, $ shall
be paid to each county general fund;
(2) Increase the property exemptions
for taxpayers who use the property as their principal residence no less than $
from the existing amounts as of July 1, 2021; and
(3) Decrease the minimum
age requirement for the home exemption no less than years
from the current minimum age requirement as of July 1, 2021."
SECTION 3. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237D- County
surcharge on transient accommodations tax; administration. (a)
The county surcharge on transient accommodations
tax, upon the adoption of county ordinances and in accordance with section 46- ,
shall be levied, assessed, and collected as provided in this section on all gross
rental or gross rental proceeds taxable under this chapter. No county shall set the surcharge on transient
accommodations tax at a rate greater than per cent of all
gross rental or gross rental proceeds taxable under this chapter. All provisions of this chapter shall apply to the
county surcharge on transient accommodations tax. With respect to the surcharge, the director of
taxation shall have the exclusive rights and power to determine the county or counties
in which a person is engaged in business, and, in the case of a person engaged
in business in more than one county, the director shall determine, through apportionment
or other means, that portion of the surcharge on transient accommodations tax attributable
to business conducted in each county.
(b) Any
county surcharge on transient accommodations tax adopted pursuant to section 46-
shall be levied no later than the first calendar day of the seventh month after
the adoption of the relevant county ordinance.
(c) The
director of taxation shall revise the transient accommodations tax forms to provide
for the clear and separate designation of the imposition and payment of the county
surcharge on transient accommodations tax.
(d) The
taxpayer shall designate the taxation district to which the county surcharge on
transient accommodations tax is assigned in accordance with rules adopted by the
director of taxation pursuant to chapter 91. The taxpayer shall file a schedule with the taxpayer's
periodic and annual transient accommodations tax returns summarizing the amount
of taxes assigned to each taxation district.
(e) The
penalties provided by section 231-39 for failure to file a tax return shall be imposed
on the amount of surcharge due on the return being filed for the failure to file
the schedule required to accompany the return. In addition, there shall be added to the tax an
amount equal to ten per cent of the amount of the surcharge and tax due on the return
being filed for the failure to file the schedule or failure to correctly report
the assignment of the transient accommodations tax by taxation district on the schedule
required under this subsection.
(f) All taxpayers who file on a fiscal year basis whose fiscal year ends after December 31 of the year prior to the taxable year in which the taxes become effective, shall file a short period annual return for the period preceding January 1 of the taxable year in which the taxes become effective. Each fiscal year, a taxpayer shall file a short period annual return for the period starting on January 1 of the taxable year in which the taxes become effective and ending before January 1 of the following year."
SECTION 4. Chapter 248, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§248- County
surcharge on transient accommodations tax; disposition of proceeds. (a)
If adopted by county ordinance, all county
surcharges on transient accommodations tax collected by the director of taxation
shall be paid into the state treasury quarterly, within ten working days after collection,
and shall be placed by the director of finance in special accounts. Out of the revenues generated by county surcharges
on transient accommodations tax paid into each respective state treasury special
account, the director of finance shall deduct five per cent of the gross proceeds
of a respective county's surcharge on transient accommodations tax to reimburse
the State for the costs of assessment, collection, and disposition of the county
surcharge on transient accommodations tax incurred by the State. Amounts retained shall be general fund realizations
of the State.
(b) The
amounts deducted for costs of assessment, collection, and disposition of county
surcharges on transient accommodations tax shall be withheld from payment to the
counties by the State out of the county surcharges on transient accommodations
tax collected for the current calendar year.
(c) After
the deduction and withholding of the costs under subsections (a) and (b), the director
of finance shall pay the remaining balance on a quarterly basis to the director
of finance of each county that has adopted a county surcharge on transient accommodations
tax under section 46- . The quarterly payments shall be made after the
county surcharges on transient accommodations tax have been paid into the state
treasury special accounts or after the disposition of any tax appeal, as the case
may be. All county surcharges on transient
accommodations tax collected shall be distributed by the director of finance to
the county in which the county surcharge on transient accommodations tax is generated
and shall be a general fund realization of the county.
(d) For the purposes of this section, the costs of assessment, collection, and disposition of the county surcharges on transient accommodations tax shall include any and all costs, direct or indirect, that are deemed necessary and proper to effectively administer this section and section 237D- ."
PART III
SECTION 5. Section 87A-42, Hawaii Revised Statutes, is amended to read as follows:
"§87A-42 Other post-employment benefits trust. (a) Notwithstanding sections 87A-31 and 87A-31.5, the board, upon terms and conditions set by the board, shall establish and administer a separate trust fund for the purpose of receiving employer contributions that will prefund other post-employment health and other benefit plan costs for retirees and their beneficiaries. The separate trust fund shall meet the requirements of the Governmental Accounting Standards Board regarding other post-employment benefits trusts. The board shall establish and maintain a separate account for each public employer within the separate trust fund to accept and account for each public employer's contributions. Employer contributions to the separate trust fund shall be irrevocable, all assets of the fund shall be dedicated exclusively to providing health and other benefits to retirees and their beneficiaries, and assets of the fund shall not be subject to appropriation for any other purpose and shall not be subject to claims by creditors of the employers or the board or plan administrator. The board's powers under section 87A-24 shall also apply to the fund established pursuant to this section.
(b) Public employer contributions shall be paid into the fund in each fiscal year, and commencing with the 2018-2019 fiscal year, the amount of the annual public employer contribution shall be equal to the amount of the annual required contribution, as determined by an actuary retained by the board.
(c) In any fiscal year subsequent to the 2017-2018 fiscal year in which the state public employer's contributions into the fund are less than the amount of the annual required contribution, the amount that represents the excess of the annual required contribution over the state public employer's contributions shall be deposited into the appropriate account of the separate trust fund from a portion of all general excise tax revenues collected by the department of taxation under section 237-31.
If any general excise tax revenues are deposited into the separate trust fund in any fiscal year as a result of this subsection, the director of finance shall notify the legislature and governor whether the general fund expenditure ceiling for that fiscal year would have been exceeded if those revenues had been legislatively appropriated instead of deposited without appropriation into the trust fund. The notification shall be submitted within thirty days following the end of the applicable fiscal year.
[(d) In any fiscal year subsequent to the 2017-2018
fiscal year in which a county public employer's contributions into the fund are
less than the amount of the annual required contribution, the amount that represents
the excess of the annual required contribution over the county public employer's
contributions shall be deposited into the fund from a portion of all transient
accommodations tax revenues collected by the department of taxation under
section 237D-6.5(b)(4). The director of
finance shall deduct the amount necessary to meet the county public employer's
annual required contribution from the revenues derived under section 237D-6.5(b)(4)
and transfer the amount to the board for deposit into the appropriate account of
the separate trust fund.
(e)] (d) In any fiscal year subsequent to fiscal year 2017-2018
in which a public employer's contributions into the fund are less than the amount
of the annual required contribution and the public employer is not entitled to
transient accommodations tax revenues sufficient to satisfy the total amount of
the annual required contribution, the public employer's contributions shall be
deposited into the fund from portions of any other revenues collected on behalf
of the public employer or held by the State.
The director of finance shall deduct the amount necessary to meet the public
employer's annual required contribution from any revenues collected on behalf of
the public employer held by the State and transfer the amount to the board for deposit
into the appropriate account of the separate trust fund.
[(f)] (e) For the purposes of this section, "annual
required contribution" means a public employer's required contribution to the
trust fund established in this section that is sufficient to cover:
(1) The normal cost, which is the cost of other post-employment benefits attributable to the current year of service; and
(2) An amortization payment, which is a catch-up payment for past service costs to fund the unfunded actuarial accrued liability over the next thirty years."
SECTION 6. Section 171-19, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is created in the department a special
fund to be designated as the "special land and development fund". Subject to the Hawaiian Homes Commission Act of
1920, as amended, and section 5(f) of the Admission Act of 1959, all proceeds
of sale of public lands, including interest on deferred payments; all moneys
collected under section 171-58 for mineral and water rights; all rents from leases,
licenses, and permits derived from public lands; all moneys collected from lessees
of public lands within industrial parks; all fees, fines, and other administrative
charges collected under this chapter and chapter 183C; a portion of the
highway fuel tax collected under chapter 243; all moneys collected by the department
for the commercial use of public trails and trail accesses under the jurisdiction
of the department; transient accommodations tax revenues collected pursuant to
section [237D-6.5(b)(5);] 237D‑6.5(b)(4); and private
contributions for the management, maintenance, and development of trails and
accesses shall be set apart in the fund and shall be used only as authorized by
the legislature for the following purposes:
(1) To reimburse the general fund of the State for advances made that are required to be reimbursed from the proceeds derived from sales, leases, licenses, or permits of public lands;
(2) For the planning,
development, management, operations, or maintenance of all lands and improvements
under the control and management of the board pursuant to title 12, including
but not limited to permanent or temporary staff positions who may be appointed
without regard to chapter 76; provided that transient accommodations tax
revenues allocated to the fund shall be expended as provided in section [237D‑6.5(b)(5);]
237D-6.5(b)(4);
(3) To repurchase any land, including improvements, in the exercise by the board of any right of repurchase specifically reserved in any patent, deed, lease, or other documents or as provided by law;
(4) For the payment of all appraisal fees; provided that all fees reimbursed to the board shall be deposited in the fund;
(5) For the payment of publication notices as required under this chapter; provided that all or a portion of the expenditures may be charged to the purchaser or lessee of public lands or any interest therein under rules adopted by the board;
(6) For the management, maintenance, and development of trails and trail accesses under the jurisdiction of the department;
(7) For the payment to private land developers who have contracted with the board for development of public lands under section 171-60;
(8) For the payment of debt service on revenue bonds issued by the department, and the establishment of debt service and other reserves deemed necessary by the board;
(9) To reimburse the general fund for debt service on general obligation bonds issued to finance departmental projects, where the bonds are designated to be reimbursed from the special land and development fund;
(10) For the protection, planning, management, and regulation of water resources under chapter 174C; and
(11) For other purposes of this chapter."
SECTION 7. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund:
(1) $1,500,000
shall be allocated to the Turtle Bay conservation easement special fund beginning
July 1, 2015, for the reimbursement to the state general fund of debt service
on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the
bonds, the proceeds of which were used to acquire the conservation easement and
other real property interests in Turtle Bay, Oahu, for the protection, preservation,
and enhancement of natural resources important to the State, until the bonds are
fully amortized;
(2) $16,500,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;
(3) $79,000,000 shall be allocated to the tourism special fund established under section 201B-11; provided that:
(A) Beginning on July 1, 2012, and ending on June 30, 2015, $2,000,000 shall be expended from the tourism special fund for development and implementation of initiatives to take advantage of expanded visa programs and increased travel opportunities for international visitors to Hawaii;
(B) Of the $79,000,000 allocated:
(i) $1,000,000 shall be allocated for the operation of a Hawaiian center and the museum of Hawaiian music and dance; and
(ii) 0.5 per cent of the $79,000,000 shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan 2005-2015; and
(C) Of the revenues
remaining in the tourism special fund after revenues have been deposited as provided
in this paragraph and except for any sum authorized by the legislature for
expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds
shall be deposited into the tourism emergency special fund, established in
section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000
in the tourism emergency special fund; and
[(4) $103,000,000 shall
be allocated as follows: Kauai county
shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and
county of Honolulu shall receive 44.1 per cent, and Maui county shall receive
22.8 per cent; provided that commencing with fiscal year 2018-2019, a sum that
represents the difference between a county public employer's annual required
contribution for the separate trust fund established under section 87A-42 and
the amount of the county public employer's contributions into that trust fund shall
be retained by the state director of finance and deposited to the credit of the
county public employer's annual required contribution into that trust fund in
each fiscal year, as provided in section 87A-42, if the respective county fails
to remit the total amount of the county's required annual contributions, as
required under section 87A-43; and
(5)] (4)
$3,000,000 shall be allocated to
the special land and development fund established under section 171-19;
provided that the allocation shall be expended in accordance with the Hawaii tourism
authority strategic plan for:
(A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;
(B) Planning, construction, and repair of facilities; and
(C) Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience.
All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection.
As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."
PART IV
SECTION 8. Chapter 235, Hawaii Revised Statutes, is amended by adding four new sections to be appropriately designated and to read as follows:
"235- Individual information return; file. (a)
Beginning January 1, 2031, each taxpayer in the State who resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations tax
pursuant to section 46- and who is otherwise not required
to file an individual income tax return, shall file an information return
reporting the gross income earned from all sources to the director of taxation
each taxable year.
(b) The director of taxation:
(1) Shall prepare
any forms that may be necessary for a taxpayer to file an information return; and
(2) May adopt rules
pursuant to chapter 91 necessary to effectuate the purposes of this section.
§235- Landlord low-income tenant tax credit. (a)
There shall be allowed to each qualified taxpayer subject to the tax
imposed under this chapter, a landlord low-income tenant tax credit that shall
be deductible from the taxpayer's net income tax liability, if any, imposed by
this chapter for the taxable year in which the credit is properly claimed.
(b) In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for qualified expenses incurred
by the entity for the taxable year. The
expenses upon which the tax credit is computed shall be determined at the entity
level. Distribution and share of credit
shall be determined pursuant to section 704(b) of the Internal Revenue Code.
(c) The landlord low-income tenant tax credit shall
be equal to fifty per cent of the difference between the annual lease rent collected
and the annual appraised fair market rental value of the unit as determined by a
licensed appraiser; provided that the credit shall not be available to units with
an appraised property value exceeding $1,000,000.
(d) The director of taxation:
(1) Shall prepare
any forms that may be necessary to claim a tax credit under this section;
(2) May require the
taxpayer to furnish reasonable information to ascertain the validity of the
claim for the tax credit made under this section; and
(3) May adopt rules
pursuant to chapter 91 necessary to effectuate the purposes of this section.
(e) If the tax credit claimed by a qualified
taxpayer exceeds the amount of income tax payment due from the qualified
taxpayer, the excess of the credit over payments due shall be refunded to the
qualified taxpayer; provided that the tax credit properly claimed by a
qualified individual who has no income tax liability shall be paid to the qualified
individual.
(f) All claims for the tax credit under this
section, including amended claims, shall be filed on or before the end of the twelfth
month following the close of the taxable year for which the credit may be
claimed. Failure to comply with the
foregoing provision shall constitute a waiver of the right to claim the credit.
(g) For the purposes of this section, "qualified
taxpayer" means a landlord who:
(1) Resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations tax
pursuant to section 46- ; and
(2) Leases a unit for
at least six months during the taxable year to persons earning ninety per cent or
less of the area median income as determined by the United States Department of
Housing and Urban Development.
§235- Residential circuit breaker tax credit.
(a) There shall be allowed to each qualified taxpayer
subject to the tax imposed under this chapter, a residential circuit breaker tax
credit that shall be deductible from the taxpayer's net income tax liability, if
any, imposed by this chapter for the taxable year in which the credit is properly
claimed.
(b) The tax credit under this section shall be equal
to per cent of the real property tax owed and paid by a
qualified taxpayer in a taxable year.
(c) The director of taxation:
(1) Shall prepare any
forms that may be necessary to claim a tax credit under this section;
(2) May require the
taxpayer to furnish reasonable information to ascertain the validity of the claim
for the tax credit made under this section; and
(3) May adopt rules
pursuant to chapter 91 necessary to effectuate the purposes of this section.
(d) If the tax credit claimed by a qualified taxpayer
exceeds the amount of income tax payment due from the qualified taxpayer, the excess
of the credit over payments due shall be refunded to the qualified taxpayer; provided
that the tax credit properly claimed by a qualified individual who has no income
tax liability shall be paid to the qualified individual.
(e) All claims for the tax credit under this section,
including amended claims, shall be filed on or before the end of the twelfth month
following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision
shall constitute a waiver of the right to claim the credit.
(f) For the purposes of this section:
"Principal residence" means
a residential property in the State in which a taxpayer has occupied for no less
than two hundred seventy calendar days of a calendar year.
"Qualified taxpayer" means
a person subject to the taxes imposed by this chapter who:
(1) Resides
in a county that adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- ;
(2) Is sixty-five years
of age or older;
(3) Is not a dependent
of another taxpayer;
(4) Has a total earned
income that is less than $20,000; and
(5) Owns and occupies
a residential property that is used as a principal residence and the assessed value
of the residential property does not exceed $1,000,000.
§235- Real property tax credit. (a) There shall be allowed to each qualified taxpayer
subject to the tax imposed under this chapter, a real property tax credit that shall
be deductible from the taxpayer's net income tax liability, if any, imposed by this
chapter for the taxable year in which the credit is properly claimed.
(b) In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for qualified expenses incurred
by the entity for the taxable year. The
expenses upon which the tax credit is computed shall be determined at the
entity level. Distribution and share of
credit shall be determined pursuant to section 704(b) of the Internal Revenue Code.
(c) The real property tax credit shall be equal to
fifty per cent of the real property tax owed and paid by a qualified taxpayer in
a taxable year; provided that the credit shall not be applied to any value of the
property exceeding $1,000,000.
(d) The director of taxation:
(1) Shall prepare any
forms that may be necessary to claim a tax credit under this section;
(2) May require the
taxpayer to furnish reasonable information to ascertain the validity of the claim
for the tax credit made under this section; and
(3) May adopt rules
pursuant to chapter 91 necessary to effectuate the purposes of this section.
(e) If the tax credit claimed by a qualified taxpayer
exceeds the amount of income tax payment due from the qualified taxpayer, the excess
of the credit over payments due shall be refunded to the qualified taxpayer; provided
that the tax credit properly claimed by a qualified individual who has no income
tax liability shall be paid to the qualified individual.
(f) All claims for the tax credit under this section,
including amended claims, shall be filed on or before the end of the twelfth month
following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision
shall constitute a waiver of the right to claim the credit.
(g) For the purposes of this section:
"Principal residence" means
a residential property in the State in which a taxpayer has occupied for no less
than two hundred seventy calendar days of a calendar year.
"Qualified taxpayer" means
a person subject to the taxes imposed by this chapter who:
(1) Resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations tax
pursuant to section 46- ; and
(2) Pays real property taxes to a county of the State for a residential property that is used as the taxpayer's principal residence during the taxable year."
SECTION 9. Section 235-51, Hawaii Revised Statutes, is amended by amending subsections (a) to (c) to read as follows:
"(a) There is hereby imposed on the taxable income of every:
(1) Taxpayer who files a joint return under section 235‑93; and
(2) Surviving spouse,
a tax determined in accordance with the following table:
In the case of any taxable year beginning after
December 31, 2001:
If
the taxable income is: The tax shall be:
Not
over $4,000 1.40% of taxable income
Over
$4,000 but $56.00 plus 3.20% of
not
over $8,000 excess over $4,000
Over
$8,000 but $184.00 plus 5.50%
of
not
over $16,000 excess over $8,000
Over
$16,000 but $624.00 plus 6.40%
of
not
over $24,000 excess over $16,000
Over
$24,000 but $1,136.00 plus 6.80%
of
not
over $32,000 excess over $24,000
Over
$32,000 but $1,680.00 plus 7.20%
of
not
over $40,000 excess over $32,000
Over
$40,000 but $2,256.00 plus 7.60%
of
not
over $60,000 excess over $40,000
Over
$60,000 but $3,776.00 plus 7.90%
of
not
over $80,000 excess over $60,000
Over
$80,000 $5,356.00 plus 8.25%
of
excess
over $80,000.
In the case of any taxable year beginning after
December 31, 2006:
If
the taxable income is: The tax shall be:
Not
over $4,800 1.40% of taxable income
Over
$4,800 but $67.00 plus 3.20% of
not
over $9,600 excess over $4,800
Over
$9,600 but $221.00 plus 5.50%
of
not
over $19,200 excess over $9,600
Over
$19,200 but $749.00 plus 6.40%
of
not
over $28,800 excess over $19,200
Over
$28,800 but $1,363.00 plus 6.80%
of
not
over $38,400 excess over $28,800
Over
$38,400 but $2,016.00 plus 7.20%
of
not
over $48,000 excess over $38,400
Over
$48,000 but $2,707.00 plus 7.60%
of
not over $72,000 excess over $48,000
Over
$72,000 but $4,531.00 plus 7.90%
of
not
over $96,000 excess over $72,000
Over
$96,000 $6,427.00 plus 8.25%
of
excess
over $96,000.
In the case of any taxable year beginning after December 31, 2017:
If the taxable income is: The tax shall be:
Not over $4,800 1.40% of taxable income
Over $4,800 but $67.00 plus 3.20% of
not over $9,600 excess over $4,800
Over $9,600 but $221.00 plus 5.50% of
not over $19,200 excess over $9,600
Over $19,200 but $749.00 plus 6.40% of
not over $28,800 excess over $19,200
Over $28,800 but $1,363.00 plus 6.80% of
not over $38,400 excess over $28,800
Over $38,400 but $2,016.00 plus 7.20% of
not over $48,000 excess over $38,400
Over $48,000 but $2,707.00 plus 7.60% of
not over $72,000 excess over $48,000
Over $72,000 but $4,531.00 plus 7.90% of
not over $96,000 excess over $72,000
Over $96,000 but $6,427.00 plus 8.25% of
not over $300,000 excess over $96,000 Over $300,000 but $23,257.00 plus 9.00% of
not over $350,000 excess over $300,000
Over $350,000 but $27,757.00 plus 10.00% of
not over $400,000 excess over $350,000
Over $400,000 $32,757.00 plus 11.00% of
excess over $400,000.
In the case of any taxable year
beginning after December 31, 2021, for a taxpayer who resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $28,800 $0
Over
$28,800 but 4.50% of taxable income
not
over $38,400 excess over $28,800
Over
$38,400 but $432.00 plus 5.20% of
not
over $48,000 excess over $38,400
Over
$48,000 but $931.00 plus 6.20% of
not over $72,000 excess
over $48,000
Over
$72,000 but $2,419.00 plus 6.50% of
not
over $96,000 excess over $72,000 Over
$96,000 but $3,979.00 plus 6.85% of
not
over $300,000 excess over $96,000 Over
$300,000 but $17,953.00 plus 7.60% of
not
over $350,000 excess over $300,000
Over
$350,000 but $21,753.00 plus 8.60% of
not
over $400,000 excess
over $350,000
Over
$400,000 $26,053.00 plus 9.60%
of
excess
over $400,000.
In the case of any taxable year beginning
after December 31, 2024, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $28,800 $0
Over
$28,800 but 3.00% of taxable income
not
over $38,400 excess over $28,800
Over
$38,400 but $288.00 plus 4.50% of
not
over $48,000 excess over $38,400
Over
$48,000 but $720.00 plus 5.20% of
not over $72,000 excess
over $48,000
Over
$72,000 but $1,968.00 plus 6.20% of
not
over $96,000 excess over $72,000 Over
$96,000 but $3,456.00 plus 6.50% of
not
over $300,000 excess over $96,000 Over
$300,000 but $16,716.00 plus 6.85% of
not
over $350,000 excess over $300,000
Over
$350,000 but $20,141.00 plus 7.60% of
not
over $400,000 excess
over $350,000
Over
$400,000 $23,941.00 plus 8.60%
of
excess
over $400,000.
In the case of any taxable year
beginning after December 31, 2027, for a taxpayer who resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $28,800 $0
Over
$28,800 but 1.50% of taxable income
not over $38,400 excess
over $28,800
Over
$38,400 but $144.00 plus 3.00% of
not
over $48,000 excess over $38,400
Over
$48,000 but $432.00 plus 4.50% of
not over $72,000 excess
over $48,000
Over
$72,000 but $1,512.00 plus 5.20% of
not
over $96,000 excess over $72,000 Over
$96,000 but $2,760.00 plus 6.20% of
not
over $300,000 excess over $96,000 Over
$300,000 but $15,408.00 plus 6.50% of
not over $350,000 excess
over $300,000
Over
$350,000 but $18,658.00 plus 6.85% of
not
over $400,000 excess over $350,000
Over
$400,000 $22,083.00 plus 7.60%
of
excess
over $400,000.
In the case of any taxable year beginning
after December 31, 2030, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $38,400 $0
Over
$38,400 but 1.50% of taxable income
not
over $48,000 excess over $38,400
Over
$48,000 but $144.00 plus 3.00% of
not
over $72,000 excess over $48,000
Over
$72,000 but $864.00 plus 4.50% of
not
over $96,000 excess over $72,000 Over
$96,000 but $1,944.00 plus 5.20% of
not
over $300,000 excess over $96,000 Over
$300,000 but $12,552.00 plus 6.20% of
not
over $350,000 excess over $300,000
Over
$350,000 but $15,652.00 plus 6.50% of
not
over $400,000 excess over $350,000
Over
$400,000 $18,902.00 plus 6.85%
of
excess
over $400,000.
In the case of any taxable year
beginning after December 31, 2033, for a taxpayer who resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $48,000 $0
Over
$48,000 but 1.50% of taxable income
not over $72,000 excess
over $48,000
Over
$72,000 but $360.00 plus 3.00% of
not
over $96,000 excess over $72,000 Over
$96,000 but $1,080.00 plus 4.50% of
not
over $300,000 excess over $96,000 Over
$300,000 but $10,260.00 plus 5.20% of
not
over $350,000 excess over $300,000
Over
$350,000 but $12,860.00 plus 6.20% of
not
over $400,000 excess over $350,000
Over
$400,000 $15,960.00 plus 6.50%
of
excess
over $400,000.
(b) There is hereby imposed on the taxable income
of every head of a household a tax determined in accordance with the following table:
In
the case of any taxable year beginning after December 31, 2001:
If the taxable income is: The tax shall be:
Not over $3,000 1.40% of taxable income
Over $3,000 but $42.00 plus 3.20% of
not over $6,000 excess over $3,000
Over $6,000 but $138.00 plus 5.50% of
not over $12,000 excess over $6,000
Over $12,000 but $468.00 plus 6.40% of
not over $18,000 excess over $12,000
Over $18,000 but $852.00 plus 6.80% of
not over $24,000 excess over $18,000
Over $24,000 but $1,260.00 plus 7.20% of
not over $30,000 excess over $24,000
Over $30,000 but $1,692.00 plus 7.60% of
not over $45,000 excess over $30,000
Over $45,000 but $2,832.00 plus 7.90% of
not over $60,000 excess over $45,000
Over $60,000 $4,017.00 plus 8.25% of
excess over
$60,000.
In
the case of any taxable year beginning after December 31, 2006:
If the taxable income is: The tax shall be:
Not over $3,600 1.40% of taxable income
Over $3,600 but $50.00 plus 3.20% of
not over $7,200 excess over $3,600
Over $7,200 but $166.00 plus 5.50% of
not over $14,400 excess over $7,200
Over $14,400 but $562.00 plus 6.40% of
not over $21,600 excess over $14,400
Over $21,600 but $1,022.00 plus 6.80% of
not over $28,800 excess over $21,600
Over $28,800 but $1,512.00 plus 7.20% of
not over $36,000 excess
over $28,800
Over $36,000 but $2,030.00 plus 7.60% of
not over $54,000 excess
over $36,000
Over $54,000 but $3,398.00 plus 7.90% of
not over $72,000 excess over $54,000
Over $72,000 $4,820.00 plus 8.25% of
excess over
$72,000.
In
the case of any taxable year beginning after December 31, 2017:
If the taxable income is: The tax shall be:
Not over $3,600 1.40% of taxable income
Over $3,600 but $50.00 plus 3.20% of
not over $7,200 excess over $3,600
Over $7,200 but $166.00 plus 5.50% of
not over $14,400 excess over $7,200
Over $14,400 but $562.00 plus 6.40% of
not over $21,600 excess over $14,400
Over $21,600 but $1,022.00 plus 6.80% of
not over $28,800 excess over $21,600
Over $28,800 but $1,512.00 plus 7.20% of
not over $36,000 excess
over $28,800
Over $36,000 but $2,030.00 plus 7.60% of
not over $54,000 excess
over $36,000
Over $54,000 but $3,398.00 plus 7.90% of
not over $72,000 excess over $54,000
Over $72,000 but $4,820.00 plus 8.25% of
not over $225,000 excess over $72,000
Over $225,000 but $17,443.00 plus 9.00% of
not over $262,500 excess over $225,000
Over $262,500 but $20,818.00 plus 10.00% of
not over $300,000 excess over $262,500
Over $300,000 $24,568.00 plus 11.00% of
excess
over $300,000.
In the case of any taxable year beginning
after December 31, 2021, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not over $21,600 0$
Over $21,600 but 4.50% of taxable income
not
over $28,800 excess
over $21,600
Over $28,800 but $324.00 plus 5.20% of
not over $36,000 excess
over $28,800
Over $36,000 but $698.00 plus 6.20% of
not over $54,000 excess
over $36,000
Over $54,000 but $1,814.00 plus 6.50% of
not over $72,000 excess over $54,000
Over $72,000 but $2,984.00 plus 6.85% of
not over $225,000 excess over $72,000
Over $225,000 but $13,465.00 plus 7.60% of
not over $262,500 excess over $225,000
Over $262,500 but $16,315.00 plus 8.60% of
not over $300,000 excess over $262,500
Over $300,000 $19,540.00 plus 9.60% of
excess
over $300,000.
In the case of any taxable year
beginning after December 31, 2024, for a taxpayer who resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not over $21,600 0$
Over $21,600 but 3.00% of taxable income
not over $28,800 excess over $21,600
Over $28,800 but $216.00 plus 4.50% of
not over $36,000 excess
over $28,800
Over $36,000 but $540.00 plus 5.20% of
not over $54,000 excess
over $36,000
Over $54,000 but $1,476.00 plus 6.20% of
not over $72,000 excess over $54,000
Over $72,000 but $2,592.00 plus 6.50% of
not over $225,000 excess over $72,000
Over $225,000 but $12,537.00 plus 6.85% of
not over $262,500 excess over $225,000
Over $262,500 but $15,106.00 plus 7.60% of
not over $300,000 excess over $262,500
Over $300,000 $17,956.00 plus 8.60% of
excess
over $300,000.
In the case of any taxable year beginning
after December 31, 2027, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not over $21,600 0$
Over $21,600 but 1.50% of taxable income
not over $28,800 excess over $21,600
Over $28,800 but $108.00 plus 3.00% of
not over $36,000 excess
over $28,800
Over $36,000 but $324.00 plus 4.50% of
not over $54,000 excess
over $36,000
Over $54,000 but $1,134.00 plus 5.20% of
not over $72,000 excess over $54,000
Over $72,000 but $2,070.00 plus 6.20% of
not over $225,000 excess over $72,000
Over $225,000 but $11,556.00 plus 6.50% of
not over $262,500 excess over $225,000
Over $262,500 but $13,994.00 plus 6.85% of
not over $300,000 excess over $262,500
Over $300,000 $16,563.00 plus 7.60% of
excess
over $300,000.
In the case of any taxable year beginning
after December 31, 2030, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If the taxable income is: The
tax shall be:
Not over $28,800 0$
Over $28,800 but 1.50% of taxable income
not over $36,000 excess
over $28,800
Over $36,000 but $108.00 plus 3.00% of
not over $54,000 excess
over $36,000
Over $54,000 but $648.00 plus 4.50% of
not over $72,000 excess over $54,000
Over $72,000 but $1,458.00 plus 5.20% of
not over $225,000 excess over $72,000
Over $225,000 but $9,414.00 plus 6.20% of
not over $262,500 excess over $225,000
Over $262,500 but $11,739.00 plus 6.50% of
not over $300,000 excess over $262,500
Over $300,000 $14,177.00 plus 6.85% of
excess
over $300,000.
In the case of any taxable year beginning
after December 31, 2033, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If the taxable income is: The
tax shall be:
Not over $36,000 0$
Over $36,000 but 1.50% of taxable income
not over $54,000 excess
over $36,000
Over $54,000 but $270.00 plus 3.00% of
not over $72,000 excess over $54,000
Over $72,000 but $810.00 plus 4.50% of
not over $225,000 excess over $72,000
Over $225,000 but $7,695.00 plus 5.20% of
not over $262,500 excess over $225,000
Over $262,500 but $9,645.00 plus 6.20% of
not over $300,000 excess over $262,500
Over $300,000 $11,970.00 plus 6.50% of
excess over
$300,000.
(c)
There is hereby imposed on the taxable income of (1) every unmarried individual
(other than a surviving spouse, or the head of a household) and (2) on the taxable
income of every married individual who does not make a single return jointly with
the individual's spouse under section 235-93 a tax determined in accordance with
the following table:
In
the case of any taxable year beginning after December 31, 2001:
If
the taxable income is: The tax shall be:
Not
over $2,000 1.40% of taxable income
Over
$2,000 but $28.00 plus 3.20% of
not
over $4,000 excess over $2,000
Over
$4,000 but $92.00 plus 5.50% of
not
over $8,000 excess over $4,000
Over
$8,000 but $312.00 plus 6.40%
of
not
over $12,000 excess over $8,000
Over
$12,000 but $568.00 plus 6.80%
of
not
over $16,000 excess over $12,000
Over
$16,000 but $840.00 plus 7.20%
of
not
over $20,000 excess over $16,000
Over
$20,000 but $1,128.00 plus 7.60%
of
not
over $30,000 excess over $20,000
Over
$30,000 but $1,888.00 plus 7.90%
of
not
over $40,000 excess over $30,000
Over
$40,000 $2,678.00 plus 8.25%
of
excess
over $40,000.
In
the case of any taxable year beginning after December 31, 2006:
If
the taxable income is: The tax shall be:
Not
over $2,400 1.40% of taxable income
Over
$2,400 but $34.00 plus 3.20% of
not
over $4,800 excess over $2,400
Over
$4,800 but $110.00 plus 5.50%
of
not
over $9,600 excess over $4,800
Over
$9,600 but $374.00 plus 6.40%
of
not
over $14,400 excess over $9,600
Over
$14,400 but $682.00 plus 6.80%
of
not
over $19,200 excess over $14,400
Over
$19,200 but $1,008.00 plus 7.20%
of
not
over $24,000 excess over $19,200
Over
$24,000 but $1,354.00 plus 7.60%
of
not
over $36,000 excess over $24,000
Over
$36,000 but $2,266.00 plus 7.90%
of
not
over $48,000 excess over $36,000
Over
$48,000 $3,214.00 plus 8.25%
of
excess
over $48,000.
In the case of any taxable year beginning after December 31, 2017:
If the taxable income is: The tax shall be:
Not over $2,400 1.40% of taxable income
Over $2,400 but $34.00 plus 3.20% of
not over $4,800 excess over $2,400
Over $4,800 but $110.00 plus 5.50% of
not over $9,600 excess over $4,800
Over $9,600 but $374.00 plus 6.40% of
not over $14,400 excess over $9,600
Over $14,400 but $682.00 plus 6.80% of
not over $19,200 excess over $14,400
Over $19,200 but $1,008.00 plus 7.20% of
not over $24,000 excess over $19,200
Over $24,000 but $1,354.00 plus 7.60% of
not over $36,000 excess over $24,000
Over $36,000 but $2,266.00 plus 7.90% of
not over $48,000 excess over $36,000
Over $48,000 but $3,214.00 plus 8.25% of
not over $150,000 excess over $48,000
Over $150,000 but $11,629.00 plus 9.00% of
not over $175,000 excess over $150,000
Over $175,000 but $13,879.00 plus 10.00% of
not over $200,000 excess over $175,000
Over $200,000 $16,379.00 plus 11.00% of
excess over $200,000.
In the case of any taxable year beginning
after December 31, 2021, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $14,400 $0
Over
$14,400 but 4.50% of taxable income
not
over $19,200 excess over $14,400
Over
$19,200 but $216.00 plus 5.20% of
not
over $24,000 excess over $19,200
Over
$24,000 but $466.00 plus 6.20% of
not
over $36,000 excess over $24,000
Over
$36,000 but $1,210.00 plus 6.50% of
not
over $48,000 excess over $36,000
Over
$48,000 but $1,990.00 plus 6.85% of
not
over $150,000 excess over $48,000
Over
$150,000 but $8,977.00 plus 7.60% of
not over $175,000 excess
over $150,000
Over
$175,000 but $10,877.00 plus 8.60% of
not
over $200,000 excess over $175,000
Over
$200,000 $13,027.00 plus 9.60%
of
excess
over $200,000.
In the case of any taxable year
beginning after December 31, 2024, for a taxpayer who resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $14,400 $0
Over
$14,400 but 3.00% of taxable income
not
over $19,200 excess over $14,400
Over
$19,200 but $144.00 plus 4.50% of
not
over $24,000 excess over $19,200
Over
$24,000 but $360.00 plus 5.20% of
not
over $36,000 excess over $24,000
Over
$36,000 but $984.00 plus 6.20% of
not
over $48,000 excess over $36,000
Over
$48,000 but $1,728.00 plus 6.50% of
not
over $150,000 excess over $48,000
Over
$150,000 but $8,358.00 plus 6.85% of
not over $175,000 excess
over $150,000
Over
$175,000 but $10,071.00 plus 7.60% of
not
over $200,000 excess over $175,000
Over
$200,000 $11,971.00 plus 8.60%
of
excess
over $200,000.
In the case of any taxable year beginning
after December 31, 2027, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $14,400 $0
Over
$14,400 but 1.50% of taxable income
not
over $19,200 excess over $14,400
Over
$19,200 but $72.00 plus 3.00% of
not
over $24,000 excess over $19,200
Over
$24,000 but $216.00 plus 4.50% of
not
over $36,000 excess over $24,000
Over
$36,000 but $756.00 plus 5.20% of
not over $48,000 excess
over $36,000
Over
$48,000 but $1,380.00 plus 6.20% of
not
over $150,000 excess over $48,000
Over
$150,000 but $7,704.00 plus 6.50% of
not over $175,000 excess
over $150,000
Over
$175,000 but $9,329.00 plus 6.85% of
not
over $200,000 excess over $175,000
Over
$200,000 $11,042.00 plus 7.60%
of
excess
over $200,000.
In the case of any taxable year
beginning after December 31, 2030, for a taxpayer who resides in a county
that adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $19,200 $0
Over
$19,200 but 1.50% of taxable income
not
over $24,000 excess over $19,200
Over
$24,000 but $72.00 plus 3.00% of
not
over $36,000 excess over $24,000
Over
$36,000 but $432.00 plus 4.50% of
not
over $48,000 excess over $36,000
Over
$48,000 but $972.00 plus 5.20% of
not
over $150,000 excess over $48,000
Over
$150,000 but $6,276.00 plus 6.20% of
not over $175,000 excess
over $150,000
Over
$175,000 but $7,826.00 plus 6.50% of
not
over $200,000 excess over $175,000
Over
$200,000 $9,451.00 plus 6.85%
of
excess
over $200,000.
In the case of any taxable year beginning
after December 31, 2033, for a taxpayer who resides in a county that adopted
an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall be:
Not
over $24,000 $0
Over
$24,000 but 1.50% of taxable income
not
over $36,000 excess over $24,000
Over
$36,000 but $180.00 plus 3.00% of
not
over $48,000 excess over $36,000
Over
$48,000 but $540.00 plus 4.50% of
not
over $150,000 excess over $48,000
Over
$150,000 but $5,130.00 plus 5.20% of
not over $175,000 excess over $150,000
Over
$175,000 but $6,430.00 plus 6.20% of
not
over $200,000 excess over $175,000
Over
$200,000 $7,980.00 plus 6.50%
of
excess over $200,000."
SECTION 10. Section 235-71, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) A tax at the rates herein provided shall be assessed, levied, collected, and paid for each taxable year on the taxable income of every corporation, including a corporation carrying on business in partnership, except that in the case of a regulated investment company the tax is as provided by subsection (b) and further that in the case of a real estate investment trust as defined in section 856 of the Internal Revenue Code of 1954 the tax is as provided in subsection (d). "Corporation" includes any professional corporation incorporated pursuant to chapter 415A.
The tax on all taxable income shall be at the rate of 4.4 per cent if the taxable income is not over $25,000, 5.4 per cent if over $25,000 but not over $100,000, and on all over $100,000, 6.4 per cent.
In the case of any taxable year beginning
after December 31, 2021, for a corporation that is located in a county that
adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall
be:
Not
over $25,000 3.30% of taxable
income
Over
$25,000 but 4.10% of taxable income
not
over $100,000
Over
$100,000 4.80% of taxable income.
In the case of any taxable year beginning
after December 31, 2024, for a corporation that is located in a county that
adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax shall
be:
Not
over $25,000 2.50% of taxable
income
Over
$25,000 but 3.10% of taxable income
not
over $100,000
Over
$100,000 3.60% of taxable income.
In the case of any taxable year beginning
after December 31, 2027, for a corporation that is located in a county that
adopted an ordinance to establish a surcharge on transient accommodations
tax pursuant to section 46- :
If
the taxable income is: The tax
shall be:
Not
over $25,000 1.90% of taxable
income
Over
$25,000 but 2.30% of taxable income
not
over $100,000
Over
$100,000 2.70% of taxable income.
(b) In the case of a regulated investment company there is imposed on the taxable income, computed as provided in sections 852 and 855 of the Internal Revenue Code but with the changes and adjustments made by this chapter (without prejudice to the generality of the foregoing, the deduction for dividends paid is limited to such amount of dividends as is attributable to income taxable under this chapter), a tax consisting in the sum of the following: 4.4 per cent if the taxable income is not over $25,000, 5.4 per cent if over $25,000 but not over $100,000, and on all over $100,000, 6.4 per cent.
In the case of any taxable year beginning
after December 31, 2021, for a regulated investment company that is located
in a county that adopted an ordinance to establish a surcharge on
transient accommodations tax pursuant to section 46- :
If
the taxable income is: The tax
shall be:
Not
over $25,000 3.30% of taxable
income
Over
$25,000 but 4.10% of taxable income
not
over $100,000
Over
$100,000 4.80% of taxable income.
In the case of any taxable year beginning
after December 31, 2024, for a regulated investment company that is located
in a county that adopted an ordinance to establish a surcharge on
transient accommodations tax pursuant to section 46- :
If
the taxable income is: The tax
shall be:
Not
over $25,000 2.50% of taxable
income
Over
$25,000 but 3.10% of taxable income
not
over $100,000
Over
$100,000 3.60% of taxable income.
In the case of any taxable year beginning
after December 31, 2027, for a regulated investment company that is located
in a county that adopted an ordinance to establish a surcharge on
transient accommodations tax pursuant to section 46- :
If
the taxable income is: The tax
shall be:
Not
over $25,000 1.90% of taxable
income
Over
$25,000 but 2.30% of taxable income
not
over $100,000
Over
$100,000 2.70% of taxable
income."
PART V
SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 12. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2021.
Report Title:
County Surcharge; Real Property Tax; Transient Accommodations Tax; Individual Income Tax; Corporation Income Tax; Income Tax Rates
Description:
Authorizes
each county to levy a county surcharge on transient accommodations tax if the
county satisfies certain real property tax requirements and requires those counties
to remit certain real property tax revenues to the State to offset the reduction
in income tax. Repeals the allocation
of transient accommodations tax revenue to the counties and makes conforming
amendments. Beginning 1/1/2031, requires certain taxpayers
to file an information return to the director of taxation. Establishes a landlord low-income tenant
tax credit, residential circuit breaker tax credit, and real property tax
credit for certain taxpayers. For counties that adopt certain ordinances, beginning
with taxable years after 12/31/2021, gradually implements new individual income
tax and corporation income tax brackets and lower tax rates in three-year
intervals. Effective 7/1/2050. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
