HB1913

Report Title:

Taxation

Description:

Provides for a payroll tax holiday.

HOUSE OF REPRESENTATIVES	H.B. NO.	1913
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to providing a payroll tax holiday.

 

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

SECTION 1. The legislature finds that in the aftermath of September 11^th, Hawaii's people have suffered serious set backs in employment opportunities and job stability, not to mention an upheaval in the security of our nations civilized society. Foremost in the midst of this tragedy lay Hawaii's people and an impaired commerce industry struggling against the ill effects of economic depression.

Accordingly, the purpose of this Act is to propose an economic incentive to the people of Hawaii and to stimulate the State's ascent during this time of recession by establishing a payroll tax holiday.

SECTION 2. (a) Notwithstanding any other provision of law, the rate of tax with respect to remuneration received during the payroll tax holiday shall be zero under §§ 235-51, 235-52, and 235-53 of the Hawaii Revised Statutes and for purposes of determining the applicable percentage under §§ 235-61-64.

(b) For the purposes of this section, the term "payroll tax holiday period" shall mean a payroll period of not more than two weeks beginning during the month of October 2002, and ending before November 1, 2002, as determined by each employer.

(c) The director of taxation shall notify all employers of the payroll tax holiday period in any manner the director deems appropriate.

SECTION 3. (a) Notwithstanding any other provision of the law, there shall be allowed to each taxpayer subject to the taxes imposed by chapter 235, chapter 237, and 26 U.S.C. §1401, an income tax credit equal to four percent of gross income for the taxable year, which shall be deductible from the taxpayer's net income tax liability, if any, imposed by chapter 235 for the taxable year in which the credit is properly claimed.

(b) If the credit under this section exceeds the taxpayer's income tax liability, the excess of credit over liability shall be refunded to the taxpayer; provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1. All claims for a credit under this section must be properly filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

SECTION 4. The director of taxation shall prepare any forms that may be necessary to effectuate the purposes of this Act. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

SECTION 5. This Act shall take effect upon its approval.

 

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