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THE SENATE |
S.B. NO. |
1184 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONFORMITY OF THE HAWAII INCOME TAX LAW TO THE INTERNAL REVENUE CODE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to conform Hawaii income tax law to the Internal Revenue Code. On January 2, 2013, Public Law 112-240, also known as the American Taxpayer Relief Act of 2012, was enacted by the federal government. Public Law 112-240 included many provisions that extended tax features that expired or were set to expire. By adopting the Internal Revenue Code, as amended as of January 2, 2013, instead of December 31, 2012, Hawaii income tax law will conform more closely to the Internal Revenue Code as the stated legislative intent in section 235-3, Hawaii Revised Statutes, suggests.
SECTION 2. Section 235-2.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) For all taxable years beginning
after December 31, [2011,] 2012, as used in this chapter, except
as provided in section 235-2.35, "Internal Revenue Code" means
subtitle A, chapter 1, of the federal Internal Revenue Code of 1986, as amended
as of [December 31, 2011,] January 2, 2013, as it applies to the
determination of gross income, adjusted gross income, ordinary income and loss,
and taxable income, except those provisions of the Internal Revenue Code and
federal public laws which, pursuant to this chapter, do not apply or are otherwise
limited in application and except for the provisions of Public Law 109-001
which apply to section 170 of the Internal Revenue Code. The provisions
of Public Law 109-001 to accelerate the deduction for charitable cash
contributions for the relief of victims of the 2004 Indian Ocean tsunami are
applicable for the calendar year that ended December 31, 2004, and the calendar
year ending December 31, 2005.
Sections 235-2, 235-2.1, and 235-2.2 shall continue to be used to determine:
(1) The basis of property, if a taxpayer first determined the basis of property in a taxable year to which such sections apply, and if such determination was made before January 1, 1978; and
(2) Gross income, adjusted gross income, ordinary income and loss, and taxable income for a taxable year to which such sections apply where such taxable year begins before January 1, 1978."
SECTION 3. Section 235-2.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) The department of taxation shall submit
to each regular session of the legislature a bill to amend sections 235-2.3,
235-2.4, and 235-2.45 and such other sections and subsections of this chapter
as may be necessary to adopt the Internal Revenue Code as it exists on [the
December 31 preceding such regular session.] January 2, 2013. In
submitting the bill the department may provide that certain amendments to the
Internal Revenue Code by Congress during the preceding calendar year shall not
be operative in this State or as operative are limited in their operation. The
department shall also prepare a digest and explanation of the amended
provisions of the Internal Revenue Code recommended for operation, as well as
those provisions which are limited in their operation, or which are not recommended
for operation, and shall submit with the bill required by this subsection the
digest, explanation, and a statement of revenue impact of the adoption of such
bill. In preparing the bill, digest, and explanation the department may
request the assistance of the office of the legislative reference bureau.
It is the intent of the legislature that it shall each year adopt all amendments to the Internal Revenue Code for the calendar year preceding the year in which the legislature meets; provided that the legislature may choose to adopt none of the amendments to the Internal Revenue Code or may provide that certain amendments are limited in their operation."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2012.
Report Title:
Income Tax; Conformity to the Internal Revenue Code for 2012
Description:
Conforms Hawaii income tax law with amendments made to the Internal Revenue Code as of 1/2/2013. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.