THE SENATE	S.B. NO.	2602
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO ESTATE TAX INFLATION ADJUSTMENT.

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

SECTION 1. Section 236E-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) An exclusion from a Hawaii taxable estate shall be allowed to the estate of every decedent against the tax imposed by section 236E-8. For the purpose of this section, the applicable exclusion amount is equal to:

(1) The federal applicable exclusion amount;

(2) The exemption equivalent of the unified credit reduced by the amount of taxable gifts made by the decedent that reduces the amount of the federal applicable exclusion amount; or

(3) The exemption equivalent of the unified credit on the decedent's federal estate tax return,

as set forth for the decedent in chapter 11 of the Internal Revenue Code as amended as of December 21, 2017, [as if the decedent died on December 31, 2017,] and to include the inflation adjustment under section 2010(c)(3)(B) of the Internal Revenue Code of 1986, as amended as of December 21, 2017, but as computed by the department, and as further adjusted pursuant to subsection (b)."

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 Statutory material to be repealed is bracketed and stricken.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

SECTION 3. This Act, upon its approval, shall apply to decedents dying after December 31, 2019, and shall not apply to decedents dying on or after December 21, 2017, and before January 1, 2020.

INTRODUCED BY:

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Report Title:

Estate Tax; Decedents; Applicable Exclusion Amount; Inflation Adjustment; Conformity to the Internal Revenue Code

Description:

Requires Hawaii's estate tax applicable exclusion amount to be calculated by utilizing the federal Internal Revenue Service inflation adjustment mechanism. Applies only to decedents dying after December 31, 2019.

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