Report Title:

Income Tax; Increase Standard Deduction

 

Description:

Increases the standard deduction available for certain income tax filings.

 

THE SENATE

S.B. NO.

2948

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO STIMULATING THE STATE'S ECONOMY BY PROVIDING AN INCOME TAX BREAK.

 

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

SECTION 1. The purpose of this Act is to stimulate economic activity by increasing consumer spending.

SECTION 2. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Section 63 (with respect to taxable income defined) of the Internal Revenue Code shall be operative for the purpose of this chapter, except that the standard deduction amount in section 63(c) of the Internal Revenue code shall instead mean:

(1) [$1,900] $2,400 in the case of:

(A) A joint return as provided by section 235-93; or

(B) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

(2) [$1,650] $2,100 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

(3) [$1,500] $1,900 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

(4) [$950] $1,200 in the case of a married individual filing a separate return.

Section 63(c)(4) shall not be operative in this State. Section 63(c)(5) shall be operative, except that the limitation on basic standard deduction in the case of certain dependents shall be the greater of $500 or such individual's earned income. Section 63(f) shall not be operative in this State.

The standard deduction amount for nonresidents shall be calculated pursuant to section 235-5."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2001.

INTRODUCED BY:

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