Report Title:
Taxation; Standard Deduction
Description:
Raises the state standard deduction over three years based on the federal standard deduction.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2782 |
|
TWENTY-THIRD LEGISLATURE, 2006 |
||
|
STATE OF HAWAII |
||
|
|
A BILL FOR AN ACT
RELATING TO TAXATION.
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 purposes of this chapter, except that the standard deduction amount in section 63(c) of the Internal Revenue Code shall instead mean[:
(1) $1,900 in the case of:
(A) A joint return as provided by section 235-93; or
(B) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);
(2) $1,650 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);
(3) $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) $950 in the case of a married individual filing a separate return.]
the following amount, as applicable:
(1) Fifty per cent of the federal amount for the tax year ending December 31, 2006;
(2) Fifty-five per cent of the federal amount for the tax year ending December 31, 2007; and
(3) Sixty per cent of the federal amount for the tax year ending December 31, 2008 and thereafter.
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] the 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 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2005.
|
INTRODUCED BY: |
_____________________________ |