REPORT TITLE:
Income Tax; Reductions


DESCRIPTION:
Postpones for 2 years implementation of last 2 years of tax rate
reductions.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2050
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO TAXATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 235-51, Hawaii Revised Statutes, is
 
 2 amended by amending subsections (a), (b), (c), and (d) to read as
 
 3 follows:
 
 4      "(a)  There is hereby imposed on the taxable income of (1)
 
 5 every taxpayer who files a joint return under section 235-93; and
 
 6 (2) every surviving spouse a tax determined in accordance with
 
 7 the following table:
 
 8      In the case of any taxable year beginning after December 31,
 
 9 1998:
 
10 If the taxable income is:          The tax shall be:
 
11 Not over $4,000                    1.60% of taxable income
 
12 Over $4,000 but                    $64.00 plus 3.90% of
 
13      not over $8,000                    excess over $4,000
 
14 Over $8,000 but                    $220.00 plus 6.80% of
 
15      not over $16,000                   excess over $8,000
 
16 Over $16,000 but                   $764.00 plus 7.20% of
 
17      not over $24,000                   excess over $16,000
 
18 Over $24,000 but                   $1,340.00 plus 7.50% of
 
19      not over $32,000                   excess over $24,000
 

 
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                                     S.B. NO.           2050
                                                        
                                                        

 
 1 Over $32,000 but                   $1,940.00 plus 7.80% of
 
 2      not over $40,000                   excess over $32,000
 
 3 Over $40,000 but                   $2,564.00 plus 8.20% of
 
 4      not over $60,000                   excess over $40,000
 
 5 Over $60,000 but                   $4,204.00 plus 8.50% of
 
 6      not over $80,000                   excess over $60,000
 
 7 Over $80,000                       $5,904.00 plus 8.75% of
 
 8                                         excess over $80,000
 
 9      In the case of any taxable year beginning after December 31,
 
10 [2000:] 2002:
 
11 If the taxable income is:          The tax shall be:
 
12 Not over $4,000                    1.50% of taxable income
 
13 Over $4,000 but                    $60.00 plus 3.70% of
 
14      not over $8,000                    excess over $4,000
 
15 Over $8,000 but                    $208.00 plus 6.40% of
 
16      not over $16,000                   excess over $8,000
 
17 Over $16,000 but                   $720.00 plus 6.90% of
 
18      not over $24,000                   excess over $16,000
 
19 Over $24,000 but                   $1,272.00 plus 7.30% of
 
20      not over $32,000                   excess over $24,000
 
21 Over $32,000 but                   $1,856.00 plus 7.60% of
 
22      not over $40,000                   excess over $32,000
 
23 Over $40,000 but                   $2,464.00 plus 7.90% of
 

 
Page 3                                                     
                                     S.B. NO.           2050
                                                        
                                                        

 
 1      not over $60,000                   excess over $40,000
 
 2 Over $60,000 but                   $4,044.00 plus 8.20% of
 
 3      not over $80,000                   excess over $60,000
 
 4 Over $80,000                       $5,684.00 plus 8.50% of
 
 5                                         excess over $80,000
 
 6      In the case of any taxable year beginning after December 31,
 
 7 [2001:] 2003:
 
 8 If the taxable income is:          The tax shall be:
 
 9 Not over $4,000                    1.40% of taxable income
 
10 Over $4,000 but                    $56.00 plus 3.20% of
 
11      not over $8,000                    excess over $4,000
 
12 Over $8,000 but                    $184.00 plus 5.50% of
 
13      not over $16,000                   excess over $8,000
 
14 Over $16,000 but                   $624.00 plus 6.40% of
 
15      not over $24,000                   excess over $16,000
 
16 Over $24,000 but                   $1,136.00 plus 6.80% of
 
17      not over $32,000                   excess over $24,000
 
18 Over $32,000 but                   $1,680.00 plus 7.20% of
 
19      not over $40,000                   excess over $32,000
 
20 Over $40,000 but                   $2,256.00 plus 7.60% of
 
21      not over $60,000                   excess over $40,000
 
22 Over $60,000 but                   $3,776.00 plus 7.90% of
 
23      not over $80,000                   excess over $60,000
 

 
Page 4                                                     
                                     S.B. NO.           2050
                                                        
                                                        

 
 1 Over $80,000                       $5,356.00 plus 8.25% of
 
 2                                         excess over $80,000
 
 3      (b)  There is hereby imposed on the taxable income of every
 
 4 head of a household a tax determined in accordance with the
 
 5 following table:
 
 6      In the case of any taxable year beginning after December 31,
 
 7 1998:
 
 8 If the taxable income is:          The tax shall be:
 
 9 Not over $3,000                    1.60% of taxable income
 
10 Over $3,000 but                    $48.00 plus 3.90% of
 
11      not over $6,000                    excess over $3,000
 
12 Over $6,000 but                    $165.00 plus 6.80% of
 
13      not over $12,000                   excess over $6,000
 
14 Over $12,000 but                   $573.00 plus 7.20% of
 
15      not over $18,000                   excess over $12,000
 
16 Over $18,000 but                   $1,005.00 plus 7.50% of
 
17      not over $24,000                   excess over $18,000
 
18 Over $24,000 but                   $1,455.00 plus 7.80% of
 
19      not over $30,000                   excess over $24,000
 
20 Over $30,000 but                   $1,923.00 plus 8.20% of
 
21      not over $45,000                   excess over $30,000
 
22 Over $45,000 but                   $3,153.00 plus 8.50% of
 
23      not over $60,000                   excess over $45,000
 

 
Page 5                                                     
                                     S.B. NO.           2050
                                                        
                                                        

 
 1 Over $60,000                       $4,428.00 plus 8.75% of
 
 2                                         excess over $60,000
 
 3      In the case of any taxable year beginning after December 31,
 
 4 [2000:] 2002:
 
 5 If the taxable income is:          The tax shall be:
 
 6 Not over $3,000                    1.50% of taxable income
 
 7 Over $3,000 but                    $45.00 plus 3.70% of
 
 8      not over $6,000                    excess over $3,000
 
 9 Over $6,000 but                    $156.00 plus 6.40% of
 
10      not over $12,000                   excess over $6,000
 
11 Over $12,000 but                   $540.00 plus 6.90% of
 
12      not over $18,000                   excess over $12,000
 
13 Over $18,000 but                   $954.00 plus 7.30% of
 
14      not over $24,000                   excess over $18,000
 
15 Over $24,000 but                   $1,392.00 plus 7.60% of
 
16      not over $30,000                   excess over $24,000
 
17 Over $30,000 but                   $1,848.00 plus 7.90% of
 
18      not over $45,000                   excess over $30,000
 
19 Over $45,000 but                   $3,033.00 plus 8.20% of
 
20      not over $60,000                   excess over $45,000
 
21 Over $60,000                       $4,263.00 plus 8.50% of
 
22                                         excess over $60,000
 
23      In the case of any taxable year beginning after December 31,
 

 
Page 6                                                     
                                     S.B. NO.           2050
                                                        
                                                        

 
 1 [2001:] 2003:
 
 2 If the taxable income is:          The tax shall be:
 
 3 Not over $3,000                    1.40% of taxable income
 
 4 Over $3,000 but                    $42.00 plus 3.20% of
 
 5      not over $6,000                    excess over $3,000
 
 6 Over $6,000 but                    $138.00 plus 5.50% of
 
 7      not over $12,000                   excess over $6,000
 
 8 Over $12,000 but                   $468.00 plus 6.40% of
 
 9      not over $18,000                   excess over $12,000
 
10 Over $18,000 but                   $852.00 plus 6.80% of
 
11      not over $24,000                   excess over $18,000
 
12 Over $24,000 but                   $1,260.00 plus 7.20% of
 
13      not over $30,000                   excess over $24,000
 
14 Over $30,000 but                   $1,692.00 plus 7.60% of
 
15      not over $45,000                   excess over $30,000
 
16 Over $45,000 but                   $2,832.00 plus 7.90% of
 
17      not over $60,000                   excess over $45,000
 
18 Over $60,000                       $4,017.00 plus 8.25% of
 
19                                         excess over $60,000
 
20      (c)  There is hereby imposed on the taxable income of (1)
 
21 every unmarried individual (other than a surviving spouse, or the
 
22 head of a household) and (2) on the taxable income of every
 
23 married individual who does not make a single return jointly with
 

 
Page 7                                                     
                                     S.B. NO.           2050
                                                        
                                                        

 
 1 the individual's spouse under section 235-93 a tax determined in
 
 2 accordance with the following table:
 
 3      In the case of any taxable year beginning after December 31,
 
 4 1998:
 
 5 If the taxable income is:          The tax shall be:
 
 6 Not over $2,000                    1.60% of taxable income
 
 7 Over $2,000 but                    $32.00 plus 3.90% of
 
 8      not over $4,000                    excess over $2,000
 
 9 Over $4,000 but                    $110.00 plus 6.80% of
 
10      not over $8,000                    excess over $4,000
 
11 Over $8,000 but                    $382.00 plus 7.20% of
 
12      not over $12,000                   excess over $8,000
 
13 Over $12,000 but                   $670.00 plus 7.50% of
 
14      not over $16,000                   excess over $12,000
 
15 Over $16,000 but                   $970.00 plus 7.80% of
 
16      not over $20,000                   excess over $16,000
 
17 Over $20,000 but                   $1,282.00 plus 8.20% of
 
18      not over $30,000                   excess over $20,000
 
19 Over $30,000 but                   $2,102.00 plus 8.50% of
 
20      not over $40,000                   excess over $30,000
 
21 Over $40,000                       $2,952.00 plus 8.75% of
 
22                                         excess over $40,000
 
23      In the case of any taxable year beginning after December 31,
 

 
Page 8                                                     
                                     S.B. NO.           2050
                                                        
                                                        

 
 1 [2000:] 2002:
 
 2 If the taxable income is:          The tax shall be:
 
 3 Not over $2,000                    1.50% of taxable income
 
 4 Over $2,000 but                    $30.00 plus 3.70% of
 
 5      not over $4,000                    excess over $2,000
 
 6 Over $4,000 but                    $104.00 plus 6.40% of
 
 7      not over $8,000                    excess over $4,000
 
 8 Over $8,000 but                    $360.00 plus 6.90% of
 
 9      not over $12,000                   excess over $8,000
 
10 Over $12,000 but                   $636.00 plus 7.30% of
 
11      not over $16,000                   excess over $12,000
 
12 Over $16,000 but                   $928.00 plus 7.60% of
 
13      not over $20,000                   excess over $16,000
 
14 Over $20,000 but                   $1,232.00 plus 7.90% of
 
15      not over $30,000                   excess over $20,000
 
16 Over $30,000 but                   $2,022.00 plus 8.20% of
 
17      not over $40,000                   excess over $30,000
 
18 Over $40,000                       $2,842.00 plus 8.50% of
 
19                                         excess over $40,000
 
20      In the case of any taxable year beginning after December 31,
 
21 [2001:] 2003:
 
22 If the taxable income is:          The tax shall be:
 
23 Not over $2,000                    1.40% of taxable income
 

 
Page 9                                                     
                                     S.B. NO.           2050
                                                        
                                                        

 
 1 Over $2,000 but                    $28.00 plus 3.20% of
 
 2      not over $4,000                    excess over $2,000
 
 3 Over $4,000 but                    $92.00 plus 5.50% of
 
 4      not over $8,000                    excess over $4,000
 
 5 Over $8,000 but                    $312.00 plus 6.40% of
 
 6      not over $12,000                   excess over $8,000
 
 7 Over $12,000 but                   $568.00 plus 6.80% of
 
 8      not over $16,000                   excess over $12,000
 
 9 Over $16,000 but                   $840.00 plus 7.20% of
 
10      not over $20,000                   excess over $16,000
 
11 Over $20,000 but                   $1,128.00 plus 7.60% of
 
12      not over $30,000                   excess over $20,000
 
13 Over $30,000 but                   $1,888.00 plus 7.90% of
 
14      not over $40,000                   excess over $30,000
 
15 Over $40,000                       $2,678.00 plus 8.25% of
 
16                                         excess over $40,000
 
17      (d)  The tax imposed by section 235-2.4 on estates and
 
18 trusts shall be determined in accordance with the following
 
19 table:
 
20      In the case of any taxable year beginning after December 31,
 
21 1998:
 
22 If the taxable income is:          The tax shall be:
 
23 Not over $2,000                    1.60% of taxable income
 

 
Page 10                                                    
                                     S.B. NO.           2050
                                                        
                                                        

 
 1 Over $2,000 but                    $32.00 plus 3.90% of
 
 2      not over $4,000                    excess over $2,000
 
 3 Over $4,000 but                    $110.00 plus 6.80% of
 
 4      not over $8,000                    excess over $4,000
 
 5 Over $8,000 but                    $382.00 plus 7.20% of
 
 6      not over $12,000                   excess over $8,000
 
 7 Over $12,000 but                   $670.00 plus 7.50% of
 
 8      not over $16,000                   excess over $12,000
 
 9 Over $16,000 but                   $970.00 plus 7.80% of
 
10      not over $20,000                   excess over $16,000
 
11 Over $20,000 but                   $1,282.00 plus 8.20% of
 
12      not over $30,000                   excess over $20,000
 
13 Over $30,000 but                   $2,102.00 plus 8.50% of
 
14      not over $40,000                   excess over $30,000
 
15 Over $40,000                       $2,952.00 plus 8.75% of
 
16                                         excess over $40,000
 
17      In the case of any taxable year beginning after December 31,
 
18 [2000:] 2002:
 
19 If the taxable income is:          The tax shall be:
 
20 Not over $2,000                    1.50% of taxable income
 
21 Over $2,000 but                    $30.00 plus 3.70% of
 
22      not over $4,000                    excess over $2,000
 
23 Over $4,000 but                    $104.00 plus 6.40% of
 

 
Page 11                                                    
                                     S.B. NO.           2050
                                                        
                                                        

 
 1      not over $8,000                    excess over $4,000
 
 2 Over $8,000 but                    $360.00 plus 6.90% of
 
 3      not over $12,000                   excess over $8,000
 
 4 Over $12,000 but                   $636.00 plus 7.30% of
 
 5      not over $16,000                   excess over $12,000
 
 6 Over $16,000 but                   $928.00 plus 7.60% of
 
 7      not over $20,000                   excess over $16,000
 
 8 Over $20,000 but                   $1,232.00 plus 7.90% of
 
 9      not over $30,000                   excess over $20,000
 
10 Over $30,000 but                   $2,022.00 plus 8.20% of
 
11      not over $40,000                   excess over $30,000
 
12 Over $40,000                       $2,842.00 plus 8.50% of
 
13                                         excess over $40,000
 
14      In the case of any taxable year beginning after December 31,
 
15 [2001:] 2003:
 
16 If the taxable income is:          The tax shall be:
 
17 Not over $2,000                    1.40% of taxable income
 
18 Over $2,000 but                    $28.00 plus 3.20% of
 
19      not over $4,000                    excess over $2,000
 
20 Over $4,000 but                    $92.00 plus 5.50% of
 
21      not over $8,000                    excess over $4,000
 
22 Over $8,000 but                    $312.00 plus 6.40% of
 
23      not over $12,000                   excess over $8,000
 

 
Page 12                                                    
                                     S.B. NO.           2050
                                                        
                                                        

 
 1 Over $12,000 but                   $568.00 plus 6.80% of
 
 2      not over $16,000                   excess over $12,000
 
 3 Over $16,000 but                   $840.00 plus 7.20% of
 
 4      not over $20,000                   excess over $16,000
 
 5 Over $20,000 but                   $1,128.00 plus 7.60% of
 
 6      not over $30,000                   excess over $20,000
 
 7 Over $30,000 but                   $1,888.00 plus 7.90% of
 
 8      not over $40,000                   excess over $30,000
 
 9 Over $40,000                       $2,678.00 plus 8.25% of
 
10                                         excess over $40,000"
 
11      SECTION 2.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 3.  This Act shall take effect upon its approval.
 
14 
 
15                           INTRODUCED BY:  _______________________