HOUSE OF REPRESENTATIVES	H.B. NO.	1720
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Teacher expenses; tax deduction. (a) There shall be allowed as a deduction from gross income the amount, not to exceed $        , for amounts paid during the taxable year by a teacher for the following expenses:

(1) Professional development courses related to the curriculum in which the teacher provides instruction; and

(2) Books, supplies, computer equipment, software, and supplementary materials used by the teacher in the classroom.

(b) The director of taxation shall prepare such forms as may be necessary to claim a tax deduction under this section, may require proof of the claim for the tax deduction, and may adopt rules pursuant to chapter 91.

(c) For the purpose of this section, "teacher" means an individual taxpayer whose duties in the public or private educational system are primarily teaching or instruction of students or related activities centered primarily on students and who is in close and continuous contact with students, and shall include but not be limited to classroom teachers, school librarians, counselors, registrars, and special education teachers."

SECTION 2. Section 241-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The measure of the tax imposed by this chapter is the entire net income from all sources for the preceding calendar year, or in the case of a taxpayer operating on a fiscal year basis, for the preceding fiscal year. The tax shall be at the rate of [seven and ninety-two one hundredths] 8.92 per cent of the entire net income from all sources."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2017.

INTRODUCED BY:

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Report Title:

Teachers; Income Tax; Deduction; Franchise Tax

Description:

Allows for a state income tax deduction for teacher supplies purchased related to the classroom. Increases the franchise tax on banks and other financial corporations.

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