Report Title:

Income Tax Refund

Description:

Provides for an income tax refund of $100 to the people of the State to satisfy requirement of the state constitution.

THE SENATE	S.B. NO.	1293
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

relating to income tax refund

.

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

     SECTION 1.  The legislature finds that Article VII, section 6, of the Constitution of the State of Hawaii requires the legislature to provide a tax refund or tax credit when certain factors are met.  The legislature finds that these factors have been met for the second year in a row and that the legislature is constitutionally required to give a tax credit or a tax refund.

     The purpose of this Act is to provide for an income tax credit of $100 to the people of the State to satisfy constitutionally mandated requirements.

     SECTION 2.  (a) In addition to any other credit allowed under chapter 235, Hawaii Revised Statutes, there shall be allowed each resident individual taxpayer who qualifies under section 235-4, Hawaii Revised Statutes, a general income tax credit of $100 which shall be deducted from income tax liability computed under chapter 235, Hawaii Revised Statutes.  The general income tax credit of $100 shall be multiplied by the number of qualified exemptions as defined in section 235-54, Hawaii Revised Statutes, to which the taxpayer is entitled, regardless of adjusted gross income.  Section 235-54, Hawaii Revised Statutes, to the contrary notwithstanding, a taxpayer seeking such a qualified exemption shall have been a resident of the State as defined in section 235-1, Hawaii Revised Statutes, for at least nine months whether or not such qualified resident was physically in the State for nine months.  For the purposes of this section, multiple exemptions shall not be granted for this credit because of age, or deficiencies in vision, hearing, or other disability.  The general income tax credit allowed under this section shall be deducted from income tax liability for the taxable year 2007.  The amount of the tax credit shall be reasonably calculated to return a total of $110,000,000 to the people of the State.

     (b)  The credit under this section shall not be available to:

     (1)  Any person who has been convicted of a felony and who has been committed to prison and has been physically confined for the full taxable year;

     (2)  Any person who would otherwise be eligible to be claimed as a dependent but who has been committed to a youth correctional facility and has resided at the facility for the full taxable year; or

     (3)  Any misdemeanant who has been committed to jail and has been physically confined for the full taxable year.

     (c) This section implements the provisions of Article VII, section 6, of the State of Hawaii Constitution enacted by the 1978 Constitutional Convention, which states as follows:

                   "DISPOSITION OF EXCESS REVENUES

     Section 6, Whenever the state general fund balance at the close of each of two successive fiscal years exceeds five percent of general fund revenues for each of the two fiscal years, the legislature in the next regular session shall provide for a tax refund or tax credit to the taxpayers of the State, as provided by law."

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

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