HOUSE OF REPRESENTATIVES	H.B. NO.	2866
TWENTY-FIFTH LEGISLATURE, 2010
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 235-51, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

     "(a)  There is hereby imposed on the taxable income of (1) every taxpayer who files a joint return under section 235-93; and (2) every surviving spouse a tax determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2001:

          If the taxable income is:    The tax shall be:

          Not over $4,000              1.40% of taxable income

          Over $4,000 but              $56.00 plus 3.20% of

            not over $8,000              excess over $4,000

          Over $8,000 but              $184.00 plus 5.50% of

            not over $16,000             excess over $8,000

          Over $16,000 but             $624.00 plus 6.40% of

            not over $24,000             excess over $16,000

          Over $24,000 but             $1,136.00 plus 6.80% of

            not over $32,000             excess over $24,000

          Over $32,000 but             $1,680.00 plus 7.20% of

            not over $40,000             excess over $32,000

          Over $40,000 but             $2,256.00 plus 7.60% of

            not over $60,000             excess over $40,000

          Over $60,000 but             $3,776.00 plus 7.90% of

            not over $80,000             excess over $60,000

          Over $80,000                 $5,356.00 plus 8.25% of

                                         excess over $80,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $4,800              1.40% of taxable income

          Over $4,800 but              $67.00 plus 3.20% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $221.00 plus 5.50% of

            not over $19,200             excess over $9,600

          Over $19,200 but             $749.00 plus 6.40% of

            not over $28,800             excess over $19,200

          Over $28,800 but             $1,363.00 plus 6.80% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $2,016.00 plus 7.20% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $2,707.00 plus 7.60% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $4,531.00 plus 7.90% of

            not over $96,000             excess over $72,000   Over $96,000          $6,427.00 plus 8.25% of

                                         excess over $96,000.

     In the case of any taxable year beginning after December 31, 2008[:] and ending before January 1, 2010:

          If the taxable income is:    The tax shall be:

          Not over $4,800              1.40% of taxable income

          Over $4,800 but              $67.00 plus 3.20% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $221.00 plus 5.50% of

            not over $19,200             excess over $9,600

          Over $19,200 but             $749.00 plus 6.40% of

            not over $28,800             excess over $19,200

          Over $28,800 but             $1,363.00 plus 6.80% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $2,016.00 plus 7.20% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $2,707.00 plus 7.60% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $4,531.00 plus 7.90% of

            not over $96,000             excess over $72,000   Over $96,000 but       $6,427.00 plus 8.25% of

            not over $300,000            excess over $96,000   Over $300,000 but                          $23,257.00 plus 9.00% of

            not over $350,000            excess over $300,000

          Over $350,000 but            $27,757.00 plus 10.00% of

            not over $400,000            excess over $350,000

          Over $400,000                $32,757.00 plus 11.00% of

                                         excess over $400,000.

In the case of any taxable year beginning after December 31, 2009 and ending before January 1, 2016:

If the taxable income is: The tax shall be:

Not over $4,800 1.40% of taxable income

Over $4,800 but $67.00 plus 3.20% of

not over $9,600 excess over $4,800

Over $9,600 but $221.00 plus 5.50% of

not over $19,200 excess over $9,600

Over $19,200 but $749.00 plus 6.40% of

not over $28,800 excess over $19,200

Over $28,800 but $1,431.00 plus 7.15% of

not over $38,400 excess over $28,800

Over $38,400 but $2,117.00 plus 7.55% of

not over $48,000 excess over $38,400

Over $48,000 but $2,842.00 plus 8.00% of

not over $72,000 excess over $48,000

Over $72,000 but $4,758.00 plus 8.30% of

not over $96,000 excess over $72,000 Over $96,000 but $6,748.00 plus 8.65% of

not over $300,000 excess over $96,000 Over $300,000 but $24,420.00 plus 9.45% of

not over $350,000 excess over $300,000

Over $350,000 but $29,145.00 plus 10.50% of

not over $400,000 excess over $350,000

Over $400,000 $34,395.00 plus 11.55% of

excess over $400,000.

(b)  There is hereby imposed on the taxable income of every head of a household a tax determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2001:

          If the taxable income is:    The tax shall be:

          Not over $3,000              1.40% of taxable income

          Over $3,000 but              $42.00 plus 3.20% of

            not over $6,000              excess over $3,000

          Over $6,000 but              $138.00 plus 5.50% of

            not over $12,000             excess over $6,000

          Over $12,000 but             $468.00 plus 6.40% of

            not over $18,000             excess over $12,000

          Over $18,000                 $852.00 plus 6.80% of

            but not over $24,000         excess over $18,000

          Over $24,000 but             $1,260.00 plus 7.20% of

            not over $30,000             excess over $24,000

          Over $30,000 but             $1,692.00 plus 7.60% of

            not over $45,000             excess over $30,000

          Over $45,000 but             $2,832.00 plus 7.90% of

            not over $60,000             excess over $45,000

          Over $60,000                 $4,017.00 plus 8.25% of

                                         excess over $60,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $3,600              1.40% of taxable income

          Over $3,600 but              $50.00 plus 3.20% of

            not over $7,200              excess over $3,600

          Over $7,200 but              $166.00 plus 5.50% of

            not over $14,400             excess over $7,200

          Over $14,400 but             $562.00 plus 6.40% of

            not over $21,600             excess over $14,400

          Over $21,600 but             $1,022.00 plus 6.80% of

            not over $28,800             excess over $21,600

          Over $28,800 but             $1,512.00 plus 7.20% of

            not over $36,000             excess over $28,800

          Over $36,000 but             $2,030.00 plus 7.60% of

            not over $54,000             excess over $36,000

          Over $54,000 but             $3,398.00 plus 7.90% of

            not over $72,000             excess over $54,000

          Over $72,000                 $4,820.00 plus 8.25% of

                                      excess over $72,000.

     In the case of any taxable year beginning after December 31, 2008[:] and ending before January 1, 2010:

          If the taxable income is:    The tax shall be:

          Not over $3,600              1.40% of taxable income

          Over $3,600 but              $50.00 plus 3.20% of

            not over $7,200              excess over $3,600

          Over $7,200 but              $166.00 plus 5.50% of

            not over $14,400             excess over $7,200

          Over $14,400 but             $562.00 plus 6.40% of

            not over $21,600             excess over $14,400

          Over $21,600 but             $1,022.00 plus 6.80% of

            not over $28,800             excess over $21,600

          Over $28,800 but             $1,512.00 plus 7.20% of

            not over $36,000             excess over $28,800

          Over $36,000 but             $2,030.00 plus 7.60% of

            not over $54,000             excess over $36,000

          Over $54,000 but             $3,398.00 plus 7.90% of

            not over $72,000             excess over $54,000

          Over $72,000 but             $4,820.00 plus 8.25% of

            not over $225,000            excess over $72,000

          Over $225,000 but            $17,443.00 plus 9.00% of

            not over $262,500            excess over $225,000

          Over $262,500 but            $20,818.00 plus 10.00% of

            not over $300,000            excess over $262,500

          Over $300,000                $24,568.00 plus 11.00% of

                                         excess over $300,000.

In the case of any taxable year beginning after December 31, 2009 and ending before January 1, 2016:

If the taxable income is: The tax shall be:

Not over $3,600 1.40% of taxable income

Over $3,600 but $50.00 plus 3.20% of

not over $7,200 excess over $3,600

Over $7,200 but $166.00 plus 5.50% of

not over $14,400 excess over $7,200

Over $14,400 but $562.00 plus 6.40% of

not over $21,600 excess over $14,400

Over $21,600 but $1,022.00 plus 6.80% of

not over $28,800 excess over $21,600

Over $28,800 but $1,588.00 plus 7.55% of

not over $36,000 excess over $28,800

Over $36,000 but $2,132.00 plus 8.00% of

not over $54,000 excess over $36,000

Over $54,000 but $3,568.00 plus 8.30% of

not over $72,000 excess over $54,000

Over $72,000 but $5,061.00 plus 8.65% of

not over $225,000 excess over $72,000

Over $225,000 but $18,315.00 plus 9.45% of

not over $262,500 excess over $225,000

Over $262,500 but $21,859.00 plus 10.50% of

not over $300,000 excess over $262,500

Over $300,000 $25,796.00 plus 11.55% of

excess over $300,000.

     (c)  There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, or the head of a household) and (2) on the taxable income of every married individual who does not make a single return jointly with the individual's spouse under section 235-93 a tax determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2001:

          If the taxable income is:    The tax shall be:

          Not over $2,000              1.40% of taxable income

          Over $2,000 but              $28.00 plus 3.20% of

            not over $4,000              excess over $2,000

          Over $4,000 but              $92.00 plus 5.50% of

            not over $8,000              excess over $4,000

          Over $8,000 but              $312.00 plus 6.40% of

            not over $12,000             excess over $8,000

          Over $12,000 but             $568.00 plus 6.80% of

            not over $16,000             excess over $12,000

          Over $16,000 but             $840.00 plus 7.20% of

            not over $20,000             excess over $16,000

          Over $20,000 but             $1,128.00 plus 7.60% of

            not over $30,000             excess over $20,000

          Over $30,000 but             $1,888.00 plus 7.90% of

            not over $40,000             excess over $30,000

          Over $40,000                 $2,678.00 plus 8.25% of

                                         excess over $40,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $2,400              1.40% of taxable income

          Over $2,400 but              $34.00 plus 3.20% of

            not over $4,800              excess over $2,400

          Over $4,800 but              $110.00 plus 5.50% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $374.00 plus 6.40% of

            not over $14,400             excess over $9,600

          Over $14,400 but             $682.00 plus 6.80% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $1,008.00 plus 7.20% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $1,354.00 plus 7.60% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $2,266.00 plus 7.90% of

            not over $48,000             excess over $36,000

          Over $48,000                 $3,214.00 plus 8.25% of

                                         excess over $48,000.

     In the case of any taxable year beginning after December 31, 2008[:] and ending before January 1, 2010:

          If the taxable income is:    The tax shall be:

          Not over $2,400              1.40% of taxable income

          Over $2,400 but              $34.00 plus 3.20% of

            not over $4,800              excess over $2,400

          Over $4,800 but              $110.00 plus 5.50% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $374.00 plus 6.40% of

            not over $14,400             excess over $9,600

          Over $14,400 but             $682.00 plus 6.80% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $1,008.00 plus 7.20% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $1,354.00 plus 7.60% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $2,266.00 plus 7.90% of

            not over $48,000             excess over $36,000

          Over $48,000 but             $3,214.00 plus 8.25% of

            not over $150,000            excess over $48,000

          Over $150,000 but            $11,629.00 plus 9.00% of

            not over $175,000            excess over $150,000

          Over $175,000 but            $13,879.00 plus 10.00% of

            not over $200,000            excess over $175,000

          Over $200,000                $16,379.00 plus 11.00% of

                                         excess over $200,000.

In the case of any taxable year beginning after December 31, 2009 and ending before January 1, 2016:

If the taxable income is: The tax shall be:

Not over $2,400 1.40% of taxable income

Over $2,400 but $34.00 plus 3.20% of

not over $4,800 excess over $2,400

Over $4,800 but $110.00 plus 5.50% of

not over $9,600 excess over $4,800

Over $9,600 but $374.00 plus 6.40% of

not over $14,400 excess over $9,600

Over $14,400 but $682.00 plus 6.80% of

not over $19,200 excess over $14,400

Over $19,200 but $1,008.00 plus 7.20% of

not over $24,000 excess over $19,200

Over $24,000 but $1,422.00 plus 7.98% of

not over $36,000 excess over $24,000

Over $36,000 but $2,379.00 plus 8.30% of

not over $48,000 excess over $36,000

Over $48,000 but $3,375.00 plus 8.45% of

not over $150,000 excess over $48,000

Over $150,000 but $12,210.00 plus 9.45% of

not over $175,000 excess over $150,000

Over $175,000 but $14,573.00 plus 10.50% of

not over $200,000 excess over $175,000

Over $200,000 $17,198.00 plus 11.55% of

excess over $200,000."

     SECTION 2.  Act 60, Session Laws of Hawaii 2009, is amended by amending section 6 to read as follows:

     "SECTION 6.  This Act shall take effect upon approval, provided that:

     (1)  Section 2 shall apply to taxable years beginning after December 31, 2008;

     (2)  Sections 1 and 3 shall apply to taxable yeas beginning after December 31, 2010; and

     (3)  On December 31, 2015, this Act shall be repealed and sections 235-2.4(a)[, 235-51 (a), (b), and (c),] and 235-54(a), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act."

     SECTION 3.  Notwithstanding any other law to the contrary, no penalty or interest under Title 14, Hawaii Revised Statutes, shall be imposed because of any underpayment of tax by a taxpayer or an employer attributable to the increase in the tax rates under this measure until the latter of:

     (1)  Ninety days after the effective date of this Act; or

(2)  Immediately, after the effective date of this Act, when the taxpayer's estimated tax payment is due.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Taxation; Income Tax Rates

Description:

Adjusts income tax rates for taxable years beginning after December 31, 2009 and ending before January 1, 2016.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.