THE SENATE

S.B. NO.

570

TWENTY-SIXTH LEGISLATURE, 2011

S.D. 1

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 (h) to read as follows:

     "(h)  Section 164 (with respect to taxes) of the Internal Revenue Code shall be operative for the purposes of this chapter, except that sections 164(a)(6) and 164(b)(6) shall not be operative for the purposes of this [chapter.] chapter; provided that amounts allowed as a deduction under sections 164(a)(3) and 164(b)(5) shall be reduced as follows:

     (1)  For a taxpayer filing a single return or a married person filing separately, the deduction shall be reduced in accordance with the following table:

If federal adjusted       The reduction shall be:

     gross income is:

Less than $75,000         50 per cent for taxable years

                               beginning after December 31, 2010;

                          75 per cent for taxable years

                               beginning after December 31, 2011;

                          100 per cent for taxable years

                               beginning after December 31, 2012.

$75,000 and over          100 per cent for taxable years

                               beginning after December 31, 2010.

     (2)  For a taxpayer filing as a head of household or surviving spouse, the deduction shall be reduced in accordance with the following table:

If federal adjusted       The reduction shall be:

     gross income is:

Less than $112,500        50 per cent for taxable years

                               beginning after December 31, 2010;

                          75 per cent for taxable years

                               beginning after December 31, 2011;

                          100 per cent for taxable years

                               beginning after December 31, 2012.

$112,500 and over         100 per cent for taxable years

                               beginning after December 31, 2010.

     (3)  For a taxpayer filing a joint return, the deduction shall be reduced in accordance with the following table:

If federal adjusted       The reduction shall be:

     gross income is:

Less than $150,000        50 per cent for taxable years

                               beginning after December 31, 2010;

                          75 per cent for taxable years

                               beginning after December 31, 2011;

                          100 per cent for taxable years

                               beginning after December 31, 2012.

$150,000 and over         100 per cent for taxable years

                               beginning after December 31, 2010."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon approval; provided that this Act shall apply to taxable years beginning after December 31, 2010.

 

Report Title:

Taxation; General Excise Tax Deduction

 

Description:

Reduces or eliminates the state income tax deduction for general excise taxes paid by a taxpayer in taxable years beginning after 12/31/10 and through 12/31/12 depending upon the taxpayer's federal adjusted gross income and filing status.  (SD1)

 

 

 

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