Bill Text: HI HB1918 | 2016 | Regular Session | Introduced
Bill Title: Income Tax Credit; Low-Income Household Renters
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2016-01-27 - Referred to FIN, referral sheet 2 [HB1918 Detail]
Download: Hawaii-2016-HB1918-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1918 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAX CREDITS FOR LOW-INCOME RENTERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii's families face the highest cost of living in the nation with seventy-two per cent of those living in poverty spending more than half of their income on housing. Median rent in Hawaii increased by forty-five per cent during 2005-2012, approximately three times the rate of inflation during the same time period. The Hawaii median monthly gross rent was $1,432 in 2013, up 2.91 per cent from $1,364 in 2011. Renter households are in need of relief as they do not benefit from federal or state tax benefits available to homeowners, while landlords generally pass along to them the costs from the general excise tax and property tax. Lack of adequate credits and exemptions results in the personal income tax actually pushing some low-income working families further into poverty.
The purpose of this Act is to:
(1) Increase the low–income household renters credit values to make up for ground lost to inflation; and
(2) Improve the credit's structure to implement tax policy best practices, allowing for a gradual credit phase-out as household income increases, and tailor the credit to better focus on those most in need.
SECTION 2. Section 235-55.7, Hawaii Revised Statutes, is amended to read as follows:
"§235-55.7 Income tax credit for low-income household renters. (a) As used in this section:
(1) "Adjusted gross income" is defined by section 235-1.
(2) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers published by the United States Department of Labor.
[(2)] (3) "Qualified
exemption" includes those exemptions permitted under this chapter;
provided that a person for whom exemption is claimed has physically resided in
the State for more than nine months during the taxable year; and provided that
multiple exemption shall not be granted because of deficiencies in vision,
hearing, or other disability.
[(3)] (4) "Rent" means
the amount paid in cash in any taxable year for the occupancy of a dwelling
place which is used by a resident taxpayer or the resident taxpayer's immediate
family as the principal residence in this State. Rent is limited to the amount
paid for the occupancy of the dwelling place only, and is exclusive of charges
for utilities, parking stalls, storage of goods, yard services, furniture,
furnishings, and the like. Rent shall not include any rental claimed as a
deduction from gross income or adjusted gross income for income tax purposes,
any ground rental paid for use of land only, and any rent allowance or
subsidies received.
(b) Each resident taxpayer who occupies and pays rent for real property within the State as the resident taxpayer's residence or the residence of the resident taxpayer's immediate family which is not partially or wholly exempted from real property tax, who is not eligible to be claimed as a dependent for federal or state income taxes by another, and who files an individual net income tax return for a taxable year, may claim a tax credit under this section against the resident taxpayer's Hawaii state individual net income tax.
(c) Each taxpayer with an adjusted gross
income of less than [$30,000] $59,700 who has paid more than
$1,000 in rent during the taxable year for which the credit is claimed may
claim a tax credit of [$50] $146 multiplied by the number of
qualified exemptions to which the taxpayer is entitled; provided each taxpayer
sixty-five years of age or over may claim double the tax credit; and provided
that a resident individual who has no income or no income taxable under this
chapter may also claim the tax credit as set forth in this section.
(d) For each taxable year beginning after December 31, 2016, each dollar amount contained in subsection (c) shall be increased by an amount equal to such dollar amount, multiplied by the percentage, if any, by which the Consumer Price Index for the preceding calendar year exceeds the Consumer Price Index for the calendar year 2017.
[(d)] (e) If a rental unit is
occupied by two or more individuals, and more than one individual is able to
qualify as a claimant, the claim for credit shall be based upon a pro rata
share of the rent paid.
[(e)] (f) The tax credits shall
be deductible from the taxpayer's individual net income tax for the tax year in
which the credits are properly claimed; provided that a husband and wife filing
separate returns for a taxable year for which a joint return could have been
made by them shall claim only the tax credits to which they would have been
entitled had a joint return been filed. In the event the allowed tax credits
exceed the amount of the income tax payments due from the taxpayer, the excess
of credits over payments due shall be refunded to the taxpayer; provided that
allowed tax credits properly claimed by an individual who has no income tax
liability shall be paid to the individual; and provided further that no refunds
or payments on account of the tax credits allowed by this section shall be made
for amounts less than $1.
[(f)] (g) The director of
taxation shall prepare and prescribe the appropriate form or forms to be used
herein, may require proof of the claim for tax credits, and may adopt rules
pursuant to chapter 91.
[(g)] (h) All of the provisions
relating to assessments and refunds under this chapter and under section
231-23(c)(1) shall apply to the tax credits hereunder.
[(h)] (i) Claims for tax credits
under this section, including any amended claims thereof, shall be filed on or
before the end of the twelfth month following the taxable year for which the
credit may be claimed."
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, 2016, and shall apply to taxable years beginning after December 31, 2016.
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INTRODUCED BY: |
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Report Title:
Income Tax Credit; Low-Income Household Renters
Description:
Amends income tax credit for low-income household renters to adjust for inflation.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
