Report Title:

Income Tax Check-Off; Senior Programs; Senior Bill Package

Description:

Creates the senior services trust fund into which is deposited a $5 income tax check-off from refunds, to be used to fund programs and services of the executive office on aging. (SD1)

THE SENATE

S.B. NO.

559

TWENTY-THIRD LEGISLATURE, 2005

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO INCOME TAX CHECK-OFF FOR SENIOR SERVICES.

 

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

SECTION 1. The mission of the executive office on aging is to assure the well-being of the State's older adults by providing advocacy and leadership in programs and policies, serving as a clearinghouse for information, and partnering with the Aging Network and the larger community to provide home and community-based care for frail, vulnerable older adults. The office develops, coordinates, and delivers services to adults sixty years and older, providing supportive, nutrition, and other related services to Hawaii's elderly population.

The executive office on aging continues to successfully administer major programs and projects such as the long-term care ombudsman program and its volunteer ombudsman program, vulnerable elder rights and legal assistance programs, sagewatch, sage plus, kupuna care, caregivers resource initiative, and the end-of-life care (kokua mau) project.

The increasing demands of Hawaii's fastest growing population segment highlight the need for more programs and services for the elderly, requiring more personnel and fiscal resources. The executive office on aging will be a key participant in comprehensive planning for long-term care.

Based upon statistics from the Hawaii Health Information Corporation's publication "Health Trends in Hawaii" as of 2000 (ten-year reporting interval) Hawaii's life expectancy was eighty years and among the highest in the nation. Compared to the rest of the world, Hawaii is fifth in longevity, behind Andorra, San Marino, Japan, and Singapore. The department of business, economic development, and tourism projects that by 2030, Hawaii's population age sixty and over will constitute one in four adults. According to the U.S. Census Bureau, as of 2003 Hawaii's population of persons age sixty and over was 244,488 or 17.9 per cent of the total population and 23.4 per cent of adults.

The legislature finds that there is an urgent need to provide appropriate services to Hawaii's aging population. However, the legislature recognizes that these services are costly and that the State cannot afford to provide the necessary funding.

The purpose of this Act is to provide for an income tax refund check-off donation to a senior services trust fund to provide a source of dedicated funding to the executive office on aging for services and programs.

SECTION 2. Chapter 349, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§349-   Senior services trust fund. (a) There is created the senior services trust fund into which shall be deposited all moneys designated to be paid to this fund pursuant to section 235-102.5(e). The senior services trust fund shall be administered by the executive office on aging.

(b) Moneys in the senior services trust fund shall be used to establish, implement, and administer programs and services under section 349-5; provided that no moneys shall be used for administrative operating expenses of the office.

(c) The director shall submit an annual report on the status of the senior services trust fund, to include:

(1) Deposits into the fund from the income tax check-off for tax refunds under subsection (a);

(2) Descriptions and amounts of expenditures made from the fund; and

(3) The balance remaining in the fund on June 30 of each year.

The report shall be submitted to the governor, legislature, and the director of finance, no later than twenty days prior to the convening of each regular session of the legislature."

SECTION 3. Section 235-102.5, Hawaii Revised Statutes, is amended to read as follows:

"§235-102.5 Income check-off authorized. (a) Any individual whose state income tax liability for any taxable year is $2 or more may designate $2 of the liability to be paid over to the Hawaii election campaign fund, any other law to the contrary notwithstanding, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax liability of $4 or more, each spouse may designate that $2 be paid to the fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. An explanation shall be included which clearly states that the check-off does not constitute an additional tax liability. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made whether by an original or amended return may not be revoked.

(b) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be deposited into the school-level minor repairs and maintenance special fund established by section 302A-1504.5, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax refund of $4 or more, each spouse may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax return form to allow the designation of contributions to the special fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(c) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be paid over to the libraries special fund established by section 312-3.6, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax refund of $4 or more, each spouse may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(d) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $5 or more may designate $5 of the refund to be paid over as follows:

(1) One-third to the Hawaii children's trust fund under section 350B-2; and

(2) Two-thirds to be divided equally among:

(A) The domestic violence prevention special fund under the department of health in section 321-1.3;

(B) The spouse and child abuse special account under the department of human services in section 346-7.5; and

(C) The spouse and child abuse special account under the judiciary in section 601-3.6.

When designated by a taxpayer submitting a state income tax return to the department, the department of budget and finance shall allocate the moneys among the several funds as provided in this subsection. In the case of a joint return of a husband and wife having a state income tax refund of $10 or more, each spouse may designate that $5 be paid over as provided in this subsection. The director of taxation shall revise the individual state income tax form to allow the designation of contributions pursuant to this subsection on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(e) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $5 or more may designate $5 of the refund to be paid over to the senior services trust fund established by section 349-  , when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax refund of $10 or more, each spouse may designate that $5 be deposited into the trust fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval; provided that section 3 shall apply to taxable years beginning after December 31, 2004.