HOUSE OF REPRESENTATIVES

H.B. NO.

2672

TWENTY-NINTH LEGISLATURE, 2018

H.D. 1

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

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

 

     SECTION 1.  Section 235-55.7, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  As used in this section:

     [(1)] "Adjusted gross income" [is defined by section 235-1.] means adjusted gross income as defined by the Internal Revenue Code.

     [(2)] "Qualified exemption" includes those exemptions permitted under this chapter; provided that a person for whom exemption is claimed has physically resided in the State for more than nine months during the taxable year; and provided that multiple exemption shall not be granted because of deficiencies in vision, hearing, or other disability.

     [(3)] "Rent" means the amount paid in cash in any taxable year for the occupancy of a dwelling place which is used by a resident taxpayer or the resident taxpayer's immediate family as the principal residence in this State.  Rent is limited to the amount paid for the occupancy of the dwelling place only, and is exclusive of charges for utilities, parking stalls, storage of goods, yard services, furniture, furnishings, and the like.  Rent shall not include any rental claimed as a deduction from gross income or adjusted gross income for income tax purposes, any ground rental paid for use of land only, and any rent allowance or subsidies received."

     2.  By amending subsection (c) to read:

     "(c)  Each taxpayer [with an adjusted gross income of less than $30,000] who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit [of $50] multiplied by the number of qualified exemptions to which the taxpayer is entitled[;] in accordance with the table below; provided that each taxpayer sixty-five years of age or over may claim double the tax credit; and provided further that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section.  The tax credit shall be calculated as follows:

     (1)  For a taxpayer filing a single return or a married person filing separately:

          Adjusted gross income             Credit per exemption

          Not over $15,000                        $        

          Over $15,000 but not over $25,000        $        

          Over $25,000 but not over $35,000        $        

     (2)  For a taxpayer filing as a head of household:

          Adjusted gross income             Credit per exemption

          Not over $25,000                        $        

          Over $25,000 but not over $37,500        $        

          Over $37,500 but not over $50,000        $        

     (3)  For a taxpayer filing a joint return under section 235-93 or a surviving spouse:

          Adjusted gross income             Credit per exemption

          Not over $30,000                        $        

          Over $30,000 but not over $50,000        $        

          Over $50,000 but not over $70,000        $        ."

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

     SECTION 3.  This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2018.

 

Report Title:

Income Tax Credit; Low-Income Household Renters

 

Description:

Expands the low-income household renters' income tax credit based on adjusted gross income and filing status.  Amends the definition of adjusted gross income to match federal definition.  Effective 7/1/2050.  (SD1)

 

 

 

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