Report Title:
Standard Deduction for Individual Income Tax
Description:
Raises the Hawaii standard deduction over a three-year period starting in 2006.
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THE SENATE |
S.B. NO. |
835 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE STANDARD DEDUCTION FOR INDIVIDUAL INCOME TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. This Act aims to provide income tax relief for lower-income individuals by raising the Hawaii standard deduction to approximately one-half of the 2004 federal standard deduction over a three-year period. This Act shall be known as the "Tax Relief for Families Act of 2005".
SECTION 2. 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) For taxable years before January 1, 2006:
[(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.
(2) For any taxable year beginning after December 31, 2005 and before January 1, 2007:
(A) $3,000 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) $2,300 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);
(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
(D) $1,500 in the case of a married individual filing a separate return.
(3) For any taxable year beginning after December 31, 2006 and before January 1, 2008:
(A) $4,000 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) $3,000 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);
(C) $2,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or
(D) $2,000 in the case of a married individual filing a separate return.
(4) For any taxable year beginning after December 31, 2007 and before January 1, 2009:
(A) $5,000 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) $3,650 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);
(C) $2,500 in the case of an individual who is not married and who is not a surviving spouse or head of household; or
(D) $2,500 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 shall take effect upon its approval
and shall apply to taxable years beginning after December 31, 2005.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |