Report Title:

Gasoline Antitrust Lawsuit; Settlement Moneys; Tax Credit

 

Description:

Requires moneys received from Hawaii oil companies in settlement of the State's gasoline antitrust lawsuit to be returned to Hawaii taxpayers in the form of a tax credit.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

2633

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to tax credits.

 

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

SECTION 1. The legislature finds that the State has recently agreed to end its three-year antitrust lawsuit against Hawaii's major oil companies. While the amount of the settlement in that case has not been officially disclosed, it has been reported to be in the amount of approximately $20,000,000. While this amount could change in the final settlement agreement, the State finds that this money should be returned to the taxpayers of this State in the form of a tax credit. This amount does not include moneys received from the State's earlier settlement in the year 2000 with BHP Hawaii Inc. and Tesoro Petroleum Corporation.

The purpose of this Act is therefore to provide for an income tax credit of $ , multiplied by the number of the taxpayer's qualified exemptions to every resident, individual taxpayer of the State, to return to the taxpayers those moneys received from the oil companies in settlement of the State's antitrust litigation.

SECTION 2. Income tax credit; gasoline lawsuit settlement. (a) There shall be allowed each resident individual taxpayer, who files an individual income tax return for the taxable year 2002, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, a general income tax credit of $ , that shall be deducted from income tax liability computed under chapter 235, Hawaii Revised Statutes; provided that:

(1) A resident individual who has no income or no income taxable under chapter 235, Hawaii Revised Statutes, and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for federal or Hawaii state individual income tax purposes may claim this credit; and

(2) The income tax credit authorized under this Act shall be distributed only from moneys received by the State in the final settlement of Anzai et al. v. Chevron et al., but shall not include moneys received by the State in partial settlement of that lawsuit from BHP Hawaii Inc. and Tesoro Petroleum Corporation.

(b) Each resident individual taxpayer may claim the general income tax credit multiplied by the number of qualified exemptions to which the taxpayer is entitled.

(c) Each person for whom the general income tax credit is claimed shall have been a resident of the State, as defined in section 235-1, Hawaii Revised Statutes, for at least nine months regardless of whether the qualified resident was physically in the State for nine months.

(d) Multiple exemptions shall not be granted for the general income tax credit because of age or deficiencies in vision, hearing, or other disability.

(e) The general income tax credit shall not be available to:

(1) Any person who has been convicted of a felony and who has been committed to prison and has been physically confined for the full taxable year;

(2) Any person who would otherwise be eligible to be claimed as a dependent but who has been committed to a youth correctional facility and has resided at the facility for the full taxable year; or

(3) Any misdemeanant who has been committed to jail and has been physically confined for the full taxable year.

(f) The tax credit claimed by a resident taxpayer pursuant to this Act shall be deductible from the resident taxpayer's individual income tax liability for the taxable year 2002. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of credits over payments due shall be refunded to the resident taxpayer; provided that a tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual.

(g) All claims for tax credits under this Act, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with this filing requirement shall constitute a waiver of the right to claim the credit.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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