REPORT TITLE:
Income Tax Rates


DESCRIPTION:
Accelerates individual income tax rate reduction to be complete
for taxable years beginning after 12/31/99.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           525
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO INDIVIDUAL INCOME TAX.



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
 
 3 as 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.           525
                                                        
                                                        

 
 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:
 
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
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 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:] 1999:
 
 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
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 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
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 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:
 
 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.           525
                                                        
                                                        

 
 1 2001:] 1999:
 
 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
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 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,
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 1 [2000:
 
 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:] 1999:
 
22 If the taxable income is:          The tax shall be:
 
23 Not over $2,000                    1.40% of taxable income
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 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
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 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:
 
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
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 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:] 1999:
 
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
 

 
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                                     S.B. NO.           525
                                                        
                                                        

 
 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, upon its approval, shall apply to
 
14 taxable years beginning after December 31, 1999.
 
15 
 
16                              INTRODUCED BY:______________________