Report Title:

Tax; Increase Standard Deduction

 

Description:

Increases standard income tax deductions. (SD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

424

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

S.D. 1

 

A BILL FOR AN ACT

 

RELATING TO THE INCOME TAX.

 

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

SECTION 1. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Section 63 (with respect to taxable income defined) of the Internal Revenue Code shall be operative for the purpose of this chapter, except that the standard deduction amount in section 63(c) of the Internal Revenue Code shall instead mean:

(1) For taxable years before January 1, 2001:

[(1)] (A) $1,900 in the case of:

[(A)] (i) A joint return as provided by section 235-93; or

[(B)] (ii) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

[(2)] (B) $1,650 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

[(3)] (C) $1,500 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

[(4)] (D) $950 in the case of a married individual filing a separate return[.]; and

(2) For the taxable year beginning after December 31, 2000, and ending before January 1, 2002:

(A) $          in the case of:

(i) A joint return as provided by section 235-93; or

(ii) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

(B) $          in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

(C) $          in the case of an individual who is not married and who is not a surviving spouse or head of household; or

(D) $          in the case of a married individual filing a separate return; and

(3) For taxable years beginning after December 31, 2001:

    1. $          in the case of:

      2. (i) A joint return as provided by section 235-93; or

      (ii) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

    2. $          in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);
    3. $          in the case of an individual who is not married and who is not a surviving spouse or head of household; or
    4. $          in the case of a married individual filing a separate return.

Section 63(c)(4) shall not be operative in this State. Section 63(c)(5) shall be operative, except that the limitation on basic standard deduction in the case of certain dependents shall be the greater of $500 or such individual's earned income. Section 63(f) shall not be operative in this State.

The standard deduction amount for nonresidents shall be calculated pursuant to section 235-5."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2050.