HB2273

Report Title:

Internal Revenue Code; Conform

 

Description:

Conforms Hawaii's tax laws with the current Internal Revenue Code amended as of December 31, 2001 by the Economic Growth and Tax Relief Reconciliation Act of 2001 that includes amendments raising limits to retirement contributions and college savings plans, and enhancing pension portability through 2010.

HOUSE OF REPRESENTATIVES	H.B. NO.	2273
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to taxation.

 

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

SECTION 1. The legislature finds that the United States Congress has raised the limits on retirement plan contributions and college savings plans, and allows for enhanced pension portability through 2010 by enacting the Economic Growth and Tax Relief Reconciliation Act of 2001. However, residents of states that do not conform their tax laws to the new federal limits, as codified in the Internal Revenue Code, will not be able to benefit from the changes to the federal law. Hawaii is one of fifteen non-conforming states. The purpose of this Act is to conform Hawaii's tax laws to the new federal limits as codified in the Internal Revenue Code, as amended as of December 31, 2001.

SECTION 2. Section 235-2.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) For all taxable years beginning after December 31, 2000, as used in this chapter "Internal Revenue Code" means subtitle A, chapter 1 of the federal Internal Revenue Code of 1986, as amended as of December 31, [2000,] 2001, as it applies to the determination of gross income, adjusted gross income, ordinary income and loss, and taxable income except those provisions of the Internal Revenue Code and federal public laws which pursuant to this chapter do not apply or are otherwise limited in application.

Sections 235-2, 235-2.1, and 235-2.2 shall continue to be used to determine:

(1) The basis of property, if a taxpayer first determined the basis of property in a taxable year to which such sections apply, and if such determination was made before January 1, 1978; and

(2) Gross income, adjusted gross income, ordinary income and loss, and taxable income for a taxable year to which such sections apply where such taxable year begins before January 1, 1978."

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 Statutory material to be repealed is bracketed and stricken.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.

INTRODUCED BY:	_____________________________