HOUSE OF REPRESENTATIVES

H.B. NO.

1575

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to Income tax.

 

 

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

 


     SECTION 1.  The legislature finds that Hawaii has the highest per capita rate of homelessness of any state in the nation.  Hawaii also has the highest rate of chronic unsheltered homeless per capita of any state.  On January 24, 2016, 7,921 people were living on the streets and in shelters in Hawaii.  Addressing homelessness requires a multi-faceted approach.

     In 2016, Los Angeles county in California considered a tax on personal incomes above $1,000,000 and using those revenues to fund programs that reduce homelessness.

     The purpose of this Act is to authorize the counties to impose a one per cent surcharge on personal incomes above $1,000,000 and requires that those revenues be used to address homelessness.

     SECTION 2.  Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§46-     County surcharge on income tax.  (a)  Each county may establish a surcharge on state income tax at the rate enumerated in section 235-    on qualifying taxable income.  A county electing to establish this surcharge shall do so by ordinance; provided that no ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance.  Notice of the public hearing required under paragraph shall be published in a newspaper of general circulation within the county at least twice within a period of thirty days immediately preceding the date of the hearing.

     (b)  A county electing to exercise the authority granted under this subsection shall notify the director of taxation within ten days after the county has adopted a surcharge on state income tax ordinance and, beginning no earlier than January 1, 2018, the director of taxation shall levy, assess, collect, and otherwise administer the county surcharge on state income tax.

     (c)  Each county that adopts a county surcharge on state income tax ordinance pursuant to this section shall use the surcharge revenues received pursuant to this section to address homelessness.

     (d)  For the purposes of this section, "qualifying taxable income" has the same meaning as defined in section 235-   ."

     SECTION 3.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§235-     County surcharge on state income tax; administration.  (a)  The county surcharge on state income tax, upon the adoption of county ordinances and in accordance with the requirements of section 46-   , shall be levied, assessed, and collected as provided in this section on qualifying taxable income.  No county shall set the surcharge on state income tax at a rate greater than one per cent of qualifying taxable income.  All provisions of this chapter shall apply to the county surcharge on state income tax.  With respect to the surcharge, the director of taxation shall have all the rights and powers provided under this chapter.  In addition, the director of taxation shall have the exclusive rights and power to determine the county or counties in which a person resides, in the case of a person residing in more than one county, the director shall determine, through apportionment or other means, that portion of the surcharge on state tax attributable to each county.

     (b)  The director of taxation shall revise the income tax forms to provide for the clear and separate designation of the imposition and payment of the county surcharge on state income tax.

     (c)  The taxpayer shall designate the taxation district to which the county surcharge on state income tax is assigned in accordance with rules adopted by the director of taxation under chapter 91.  The taxpayer shall file a schedule with the taxpayer's income tax returns summarizing the amount of taxes assigned to each taxation district.

     (d)  The penalties provided by section 231-39 for failure to file a return shall be imposed on the amount of surcharge due on the return being filed for the failure to file the schedule required to accompany the return.  In addition, there shall be added to the tax an amount equal to ten per cent of the amount of the surcharge and tax due on the return being filed for the failure to file the schedule or the failure to correctly report the assignment of income tax by taxation district on the schedule required under this subsection.

     (e)  As used in this section, "qualifying taxable income" means:

     (1)  For a taxpayer filing a single return or a married person filing separately, taxable income in excess of $1,000,000;

     (2)  For a taxpayer filing as a head of household, taxable income in excess of $1,000,000; and

     (3)  For a taxpayer filing a joint return or as a surviving spouse, taxable income is excess of $1,000,000."

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2017.

 

INTRODUCED BY:

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Report Title:

Homeless; Homelessness; Income Tax

 

Description:

Authorizes the counties to enact a 1% income tax surcharge on taxable personal incomes above $1,000,000 to address homelessness.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.