REPORT TITLE:
Tax Credit; Travel


DESCRIPTION:
Provides an income tax credit for transportation costs for
residents travelling more than 25 miles to work.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1604       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO TAXATION.
 


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

 1      SECTION 1.  The legislature finds that some residents of
 
 2 this state travel long distances to and from work.  This can be
 
 3 costly in terms of upkeep of their vehicles, gas, or the cost of
 
 4 public transportation.  The purpose of this Act is to provide
 
 5 some relief for those residents travelling more than 25 miles to
 
 6 work by providing for a tax credit.
 
 7      SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended
 
 8 by adding a new section to be appropriately designated and to
 
 9 read as follows:
 
10      "�2355-    . Travel credit. (a) Each resident individual
 
11 taxpayer, who files an individual income tax return for a taxable
 
12 year, and who is not claimed or is not otherwise eligible to be
 
13 claimed as a dependent by another taxpayer for Hawaii state
 
14 individual income tax purposes, may claim a travel credit against
 
15 the resident taxpayer's individual income tax liability for the
 
16 taxable year for which the income tax return is being filed;
 
17 provided that the taxpayer travels more than 25 miles to work
 
18 from the taxpayer's residence.  The taxpayer must be a resident
 
19 of the state.
 

 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1604       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT
 1      (b) The amount of the credit shall be equal to the one-half
 
 2 the cost of an annual bus pass during the year for which the
 
 3 income tax return is being filed or $150 but shall not be more
 
 4 than $150 in any one taxable year.
 
 5      (c) The tax credit claimed by a resident taxpayer pursuant
 
 6 to this section shall be deductible from the resident taxpayer's
 
 7 tax liability, if any, for the tax year in which the credit is
 
 8 properly claimed.  If the tax credit claimed by a resident
 
 9 taxpayer exceeds the amount of income tax payment due from the
 
10 resident taxpayer, the excess of credit over payment due shall be
 
11 refunded to the resident taxpayer; provided that the tax credit
 
12 properly claimed by a resident individual who has no income tax
 
13 liability shall be paid to the resident individual; and provided
 
14 further that no refunds or payment on account of the tax credit
 
15 allowed by this section shall be made for amounts less than $1. 
 
16      (d)  For the purposes of this section, 
 
17      "Residence" means the taxpayer's principle place of shelter.
 
18      (e) The director of taxation shall prepare forms as may be
 
19 necessary to claim a credit under this section.  The director may
 
20 also require the taxpayer to furnish reasonable information in
 
21 order that the director may ascertain the validity of the claim
 
22 for credit made under this section.  The director may adopt rules
 
23 necessary to effectuate the purposes of this section pursuant to
 

 
Page 3                                                     
                                     H.B. NO.1604       
                                                        
                                                        

 
 1 chapter 91.
 
 2      (f)  All claims for tax credits under this section,
 
 3 including any amended claims, shall be filed on or before the end 
 
 4 of the twelfth month following the close of the taxable year for
 
 5 which the credits may be claimed.  Failure to comply with the
 
 6 foregoing provision shall constitute a waiver of the right to
 
 7 claim the credit."
 
 8      SECTION 3.  New statutory material is underscored.
 
 9      SECTION 4.  This Act shall take effect on July 1, 1999.
 
10 
 
11                           INTRODUCED BY:  _______________________