|
THE SENATE |
S.B. NO. |
3250 |
|
THIRTY-FIRST LEGISLATURE, 2022 |
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:
PART I
SECTION 1. Section 235-51, Hawaii Revised Statutes, is amended by amending subsections (a) through (d) to read as follows:
"(a) There is hereby
imposed on the taxable income of every:
(1) Taxpayer
who files a joint return under section 235‑93; and
(2) Surviving
spouse,
a
tax determined in accordance with the following table:
In the case of any taxable year beginning
after December 31, 2017:
If
the taxable income is: The tax shall be:
Not
over $4,800 1.40% of taxable
income
Over
$4,800 but $67.00 plus 3.20%
of
not
over $9,600 excess over $4,800
Over
$9,600 but $221.00 plus 5.50%
of
not
over $19,200 excess over
$9,600
Over
$19,200 but $749.00 plus 6.40%
of
not
over $28,800 excess over
$19,200
Over
$28,800 but $1,363.00 plus
6.80% of
not
over $38,400 excess over
$28,800
Over
$38,400 but $2,016.00 plus
7.20% of
not
over $48,000 excess over
$38,400
Over
$48,000 but $2,707.00 plus
7.60% of
not
over $72,000 excess over
$48,000
Over
$72,000 but $4,531.00 plus 7.90%
of
not
over $96,000 excess over
$72,000
Over
$96,000 but $6,427.00 plus
8.25% of
not
over $300,000 excess over
$96,000
Over
$300,000 but $23,257.00 plus
9.00% of
not
over $350,000 excess over $300,000
Over
$350,000 but $27,757.00 plus
10.00% of
not
over $400,000 excess over
$350,000
Over
$400,000 $32,757.00 plus
11.00% of
excess
over $400,000.
In the case of any taxable year
beginning after December 31, 2021:
If
the taxable income is: The tax
shall be:
Not
over $4,800 1.40% of
taxable income
Over
$4,800 but $67.00 plus
3.20% of
not
over $9,600 excess
over $4,800
Over
$9,600 but $221.00 plus
5.50% of
not
over $19,200 excess
over $9,600
Over
$19,200 but $749.00
plus 6.40% of
not
over $28,800 excess
over $19,200
Over
$28,800 but $1,363.00
plus 6.80% of
not
over $38,400 excess
over $28,800
Over
$38,400 but $2,016.00 plus
7.20% of
not
over $48,000 excess
over $38,400
Over
$48,000 but $2,707.00 plus
7.60% of
not
over $72,000 excess over
$48,000
Over
$72,000 but $4,531.00
plus 7.90% of
not
over $96,000 excess
over $72,000
Over
$96,000 but $6,427.00
plus 8.25% of
not
over $300,000 excess
over $96,000
Over
$300,000 but $23,257.00
plus 9.00% of
not
over $350,000 excess
over $300,000
Over
$350,000 but $27,757.00
plus 10.00% of
not
over $400,000 excess
over $350,000
Over
$400,000 but $32,757.00
plus 11.00% of
not
over $10,000,000 excess over
$400,000
Over
$10,000,000 but $816,568.00
plus 16.00%
not over $25,000,000 of excess over
$10,000,000
Over
$25,000,000 $2,616,568.00 plus
19.00% of excess over
$25,000,000.
(b)
There is hereby imposed on the taxable income of every head of a household
a tax determined in accordance with the following table:
In the case of any taxable year beginning
after December 31, 2017:
If
the taxable income is: The tax shall be:
Not
over $3,600 1.40% of taxable
income
Over
$3,600 but $50.00 plus 3.20% of
not
over $7,200 excess over
$3,600
Over
$7,200 but $166.00 plus 5.50%
of
not
over $14,400 excess over $7,200
Over
$14,400 but $562.00 plus 6.40%
of
not
over $21,600 excess over
$14,400
Over
$21,600 but $1,022.00 plus 6.80%
of
not
over $28,800 excess over
$21,600
Over
$28,800 but $1,512.00 plus 7.20%
of
not
over $36,000 excess over
$28,800
Over
$36,000 but $2,030.00 plus
7.60% of
not
over $54,000 excess over $36,000
Over
$54,000 but $3,398.00 plus
7.90% of
not
over $72,000 excess over
$54,000
Over
$72,000 but $4,820.00 plus
8.25% of
not
over $225,000 excess over
$72,000
Over
$225,000 but $17,443.00 plus
9.00% of
not
over $262,500 excess over $225,000
Over
$262,500 but $20,818.00 plus
10.00% of
not
over $300,000 excess over
$262,500
Over
$300,000 $24,568.00 plus
11.00% of
excess
over $300,000.
In
the case of any taxable year beginning after December 31, 2021:
If
the taxable income is: The tax
shall be:
Not
over $3,600 1.40% of taxable
income
Over
$3,600 but $50.00 plus
3.20% of
not
over $7,200 excess
over $3,600
Over
$7,200 but $166.00
plus 5.50% of
not
over $14,400 excess
over $7,200
Over
$14,400 but $562.00
plus 6.40% of
not
over $21,600 excess
over $14,400
Over
$21,600 but $1,022.00
plus 6.80% of
not
over $28,800 excess
over $21,600
Over
$28,800 but $1,512.00
plus 7.20% of
not
over $36,000 excess
over $28,800
Over
$36,000 but $2,030.00
plus 7.60% of
not
over $54,000 excess
over $36,000
Over
$54,000 but $3,398.00
plus 7.90% of
not
over $72,000 excess
over $54,000
Over
$72,000 but $4,820.00
plus 8.25% of
not
over $225,000 excess
over $72,000
Over
$225,000 but $17,443.00
plus 9.00% of
not
over $262,500 excess
over $225,000
Over
$262,500 but $20,818.00
plus 10.00% of
not
over $300,000 excess
over $262,500
Over
$300,000 but $24,568.00
plus 11.00% of
not over $7,500,000 excess over $300,000
Over $7,500,000 but $816,568.00
plus 16.00%
not
over $18,750,000 of excess over
$7,500,000
Over $18,750,000 $2,616,568.00 plus
19.00% of excess over
$18,750,000.
(c)
There is hereby imposed on the taxable income of (1) every unmarried
individual (other than a surviving spouse, or the head of a household) and (2)
on the taxable income of every married individual who does not make a single
return jointly with the individual's spouse under section 235-93 a tax determined
in accordance with the following table:
In the case of any taxable year beginning after
December 31, 2017:
If
the taxable income is: The tax shall
be:
Not
over $2,400 1.40% of taxable
income
Over
$2,400 but $34.00 plus 3.20%
of
not
over $4,800 excess over $2,400
Over
$4,800 but $110.00 plus 5.50%
of
not
over $9,600 excess over $4,800
Over
$9,600 but $374.00 plus 6.40%
of
not
over $14,400 excess over $9,600
Over
$14,400 but $682.00 plus 6.80%
of
not
over $19,200 excess over
$14,400
Over
$19,200 but $1,008.00 plus 7.20%
of
not
over $24,000 excess over
$19,200
Over
$24,000 but $1,354.00 plus
7.60% of
not
over $36,000 excess over
$24,000
Over
$36,000 but $2,266.00 plus
7.90% of
not
over $48,000 excess over
$36,000
Over
$48,000 but $3,214.00 plus
8.25% of
not
over $150,000 excess over $48,000
Over
$150,000 but $11,629.00 plus
9.00% of
not
over $175,000 excess over
$150,000
Over
$175,000 but $13,879.00 plus
10.00% of
not
over $200,000 excess over
$175,000
Over
$200,000 $16,379.00 plus
11.00% of
excess
over $200,000.
In the case of any taxable year beginning
after December 31, 2021:
If
the taxable income is: The tax
shall be:
Not
over $2,400 1.40% of
taxable income
Over
$2,400 but $34.00 plus
3.20% of
not
over $4,800 excess
over $2,400
Over
$4,800 but $110.00
plus 5.50% of
not
over $9,600 excess over
$4,800
Over
$9,600 but $374.00
plus 6.40% of
not
over $14,400 excess
over $9,600
Over
$14,400 but $682.00
plus 6.80% of
not
over $19,200 excess
over $14,400
Over
$19,200 but $1,008.00
plus 7.20% of
not
over $24,000 excess over
$19,200
Over
$24,000 but $1,354.00
plus 7.60% of
not
over $36,000 excess
over $24,000
Over
$36,000 but $2,266.00
plus 7.90% of
not
over $48,000 excess
over $36,000
Over
$48,000 but $3,214.00
plus 8.25% of
not
over $150,000 excess
over $48,000
Over
$150,000 but $11,629.00
plus 9.00% of
not
over $175,000 excess
over $150,000
Over
$175,000 but $13,879.00
plus 10.00% of
not
over $200,000 excess
over $175,000
Over
$200,000 but $16,379.00
plus 11.00% of
not
over $5,000,000 excess
over $200,000
Over $5,000,000 but $544,379.00 plus 16.00%
not over $12,500,000 of excess over $5,000,000
Over $12,500,000 $1,744.379.00 plus
19.00% of excess over
$12,500.000.
(d) The tax imposed by section 235-2.45 on estates and trusts shall be determined in accordance with the following table:
In the case of any taxable year beginning after December 31, 2001:
If the taxable income is: The tax shall be:
Not over $2,000 1.40% of taxable income
Over $2,000 but $28.00 plus 3.20% of
not over $4,000 excess over $2,000
Over $4,000 but $92.00 plus 5.50% of
not over $8,000 excess over $4,000
Over $8,000 but $312.00 plus 6.40% of
not over $12,000 excess over $8,000
Over $12,000 but $568.00 plus 6.80% of
not over $16,000 excess over $12,000
Over $16,000 but $840.00 plus 7.20% of
not over $20,000 excess over $16,000
Over $20,000 but $1,128.00 plus 7.60% of
not over $30,000 excess over $20,000
Over $30,000 but $1,888.00 plus 7.90% of
not over $40,000 excess over $30,000
Over $40,000 $2,678.00 plus 8.25% of
excess over $40,000.
In
the case of any taxable year beginning after December 31, 2021:
If
the taxable income is: The tax shall be:
Not
over $2,000 1.40% of taxable income
Over
$2,000 but $28.00 plus 3.20% of
not
over $4,000 excess over $2,000
Over
$4,000 but $92.00 plus 5.50% of
not
over $8,000 excess over $4,000
Over
$8,000 but $312.00 plus 6.40% of
not
over $12,000 excess over $8,000
Over
$12,000 but $568.00 plus 6.80% of
not
over $16,000 excess over $12,000
Over
$16,000 but $840.00 plus 7.20% of
not
over $20,000 excess over $16,000
Over
$20,000 but $1,128.00 plus 7.60% of
not
over $30,000 excess over $20,000
Over
$30,000 but $1,888.00 plus 7.90% of
not
over $40,000 excess over $30,000
Over
$40,000 but $2,678.00 plus 8.25% of
not
over $200,000 excess
over $40,000
Over $200,000 but $134,678.00
plus 13.25%
not
over $500,000 excess
over $200,000
Over $500,000 $174,428.00
plus 16.25%
of excess over
$500,000."
PART II
SECTION 2. (a) There is established within the department of taxation for administrative purposes only a wealth tax working group. The working group shall develop a proposal to establish a state wealth tax.
(b) The wealth tax working group shall comprise the following:
(1) The director of taxation or the director's designee, who shall serve as chairperson of the working group; and
(2) The chairperson of the council on revenues or the chairperson's designee.
(c) In addition to the members designated by subsection (b), the working group may invite any other appropriate person to join the working group.
(d) The initial meeting of the working group shall take place no later than sixty days after the effective date of this Act and shall be convened by the director of taxation or the director's designee.
(e) Members of the working group shall serve without compensation. No member of the working group shall be subject to section 84-17, Hawaii Revised Statutes, solely because of that member's participation on the working group.
(f) As part of its proposal the working group shall develop:
(1) A procedure for imposing a wealth tax on individuals having assets of more than $10,000,000;
(2) An appropriate wealth tax rate; and
(3) Revenue projections for the wealth tax.
(g) The department of taxation shall provide administrative and clerical support as required by the working group.
(h) The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2023.
(i) The working group shall cease to exist on June 30, 2023.
PART III
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 30, 2075.
Report Title:
Income Tax; High-Income Individuals, Wealth Tax; Working Group
Description:
Establishes two additional marginal tax rates for joint filers whose income exceeds $10,000,000 and $25,000,000, head of households whose income exceeds $7,500,000 and $18,750,000, individuals whose income exceeds $5,000,000 and $12,500,000, and estates and trusts that have income exceeding $200,000 and $500,000, respectively. Establishes a working group within the Department of Taxation to develop a proposal for a state wealth tax. Takes effect on 7/30/2075. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.