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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2642 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to reduce the burden on the low- and middle-class earners in the State, help prevent and reduce homelessness, and reduce the cost of living for the residents of Hawaii by:
(1) Lowering the income tax rates for the lowest six income brackets;
(2) Increasing the rental motor vehicle surcharge tax;
(3) Requiring the increased revenue in the rental motor vehicle surcharge tax to be deposited into the general fund to offset the lower income tax rates; and
(4) Increasing the refundable food/excise tax credit.
SECTION 2. Section 251-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is levied and shall be assessed and
collected each month a rental motor vehicle surcharge tax of $7.50 a day,
except that after June 30, 2012, the tax shall be $3 a day[,] and
after June 30, 2017, the tax shall be $10 a day, or any portion of a day
that a rental motor vehicle is rented or leased. The rental motor vehicle surcharge tax shall
be levied upon the lessor; provided that the tax shall not be levied on the
lessor if:
(1) The lessor is renting the vehicle to replace a vehicle of the lessee that is being repaired; and
(2) A record of the repair order for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B-16."
SECTION 3. Section 251-5, Hawaii Revised Statutes, is amended to read as follows:
"§251-5 Remittances. All remittances of surcharge taxes imposed
under this chapter shall be made by cash, bank draft, cashier's check, money
order, or certificate of deposit to the office of the taxation district to
which the return was transmitted. The
department shall deposit the moneys into the state treasury to the credit of
the state highway fund[.]; provided that seventy per cent of the rental
motor vehicle surcharge tax revenues shall be deposited into the general fund."
SECTION 4. Section 235-51, Hawaii Revised Statutes, is amended by amending subsections (a) through (c) to read as follows:
"(a) There is hereby imposed
on the taxable income of every:
(1) Taxpayer who files a joint return under section 235-93; and
(2) Surviving spouse,
a tax determined in accordance with the following table:
In the case of any taxable year beginning after
December 31, 2001:
If
the taxable income is: The tax shall be:
Not
over $4,000 1.40% of taxable income
Over
$4,000 but $56.00 plus 3.20% of
not
over $8,000 excess over $4,000
Over
$8,000 but $184.00 plus 5.50%
of
not
over $16,000 excess over $8,000
Over
$16,000 but $624.00 plus 6.40%
of
not
over $24,000 excess over $16,000
Over
$24,000 but $1,136.00 plus 6.80%
of
not
over $32,000 excess over $24,000
Over
$32,000 but $1,680.00 plus 7.20%
of
not
over $40,000 excess over $32,000
Over
$40,000 but $2,256.00 plus 7.60%
of
not
over $60,000 excess over $40,000
Over
$60,000 but $3,776.00 plus 7.90%
of
not
over $80,000 excess over $60,000
Over
$80,000 $5,356.00 plus 8.25%
of
excess
over $80,000.
In the case of any taxable year beginning after
December 31, 2006:
If
the taxable income is: The tax shall be:
Not
over $4,800 1.40% of taxable income
Over
$4,800 but $67.00 plus 3.20% of
not
over $9,600 excess over $4,800
Over
$9,600 but $221.00 plus 5.50%
of
not
over $19,200 excess over $9,600
Over
$19,200 but $749.00 plus 6.40%
of
not
over $28,800 excess over $19,200
Over
$28,800 but $1,363.00 plus 6.80%
of
not
over $38,400 excess over $28,800
Over
$38,400 but $2,016.00 plus 7.20%
of
not
over $48,000 excess over $38,400
Over
$48,000 but $2,707.00 plus 7.60%
of
not over $72,000 excess over $48,000
Over
$72,000 but $4,531.00 plus 7.90%
of
not
over $96,000 excess over $72,000
Over
$96,000 $6,427.00 plus 8.25%
of
excess
over $96,000.
In the case of any taxable year beginning after December 31, 2017:
If the taxable income is: The tax shall be:
Not over $4,800 [1.40] 0.40% of
taxable
income
Over $4,800 but [$67.00] $19.00
plus
[3.20] 2.20% of
not over $9,600 excess over $4,800
Over $9,600 but [$221.00] $125.00
plus
[5.50] 4.50% of
not over $19,200 excess over $9,600
Over $19,200 but [$749.00]
$557.00
plus
[6.40] 5.40% of
not over $28,800 excess over $19,200
Over $28,800 but [$1,363.00]
$1,075.00
plus [6.80]
5.80% of
not over $38,400 excess over $28,800
Over $38,400 but [$2,016.00]
$1,632.00
plus
[7.20] 6.20% of
not over $48,000 excess over $38,400
Over $48,000 but [$2,707.00] $2,227.00
plus 7.60% of
not over $72,000 excess over $48,000
Over $72,000 but [$4,531.00] $4,051.00
plus 7.90% of
not
over $96,000 excess
over $72,000 Over $96,000 but [$6,427.00] $5,947.00
plus 8.25% of
not
over $300,000 excess
over $96,000 Over $300,000 but [$23,257.00]
$22,777.00
plus 9.00% of
not over $350,000 excess over $300,000
Over
$350,000 but [$27,757.00] $27,277.00
plus 10.00% of
not over $400,000 excess over $350,000
Over $400,000 [$32,757.00]
$32,277.00
plus 11.00% of excess
over $400,000.
(b) There is hereby imposed on the taxable income
of every head of a household a tax determined in accordance with the following table:
In
the case of any taxable year beginning after December 31, 2001:
If the taxable income is: The tax shall be:
Not over $3,000 1.40% of taxable income
Over $3,000 but $42.00 plus 3.20% of
not over $6,000 excess over $3,000
Over $6,000 but $138.00 plus 5.50% of
not over $12,000 excess over $6,000
Over $12,000 but $468.00 plus 6.40% of
not over $18,000 excess over $12,000
Over $18,000 but $852.00 plus 6.80% of
not over $24,000 excess over $18,000
Over $24,000 but $1,260.00 plus 7.20% of
not over $30,000 excess over $24,000
Over $30,000 but $1,692.00 plus 7.60% of
not over $45,000 excess over $30,000
Over $45,000 but $2,832.00 plus 7.90% of
not over $60,000 excess over $45,000
Over $60,000 $4,017.00 plus 8.25% of
excess over
$60,000.
In
the case of any taxable year beginning after December 31, 2006:
If the taxable income is: The tax shall be:
Not over $3,600 1.40% of taxable income
Over $3,600 but $50.00 plus 3.20% of
not over $7,200 excess over $3,600
Over $7,200 but $166.00 plus 5.50% of
not over $14,400 excess over $7,200
Over $14,400 but $562.00 plus 6.40% of
not over $21,600 excess over $14,400
Over $21,600 but $1,022.00 plus 6.80% of
not over $28,800 excess over $21,600
Over $28,800 but $1,512.00 plus 7.20% of
not over $36,000 excess
over $28,800
Over $36,000 but $2,030.00 plus 7.60% of
not over $54,000 excess
over $36,000
Over $54,000 but $3,398.00 plus 7.90% of
not over $72,000 excess over $54,000
Over $72,000 $4,820.00 plus 8.25% of
excess over $72,000.
In
the case of any taxable year beginning after December 31, 2017:
If the taxable income is: The tax shall be:
Not over $3,600 [1.40] 0.40% of taxable
income
Over $3,600 but [$50.00] $14.00 plus
[3.20]
2.20% of
not over $7,200 excess
over $3,600
Over $7,200 but [$166.00] $94.00 plus
[5.50]
4.50% of
not over $14,400 excess
over $7,200
Over $14,400 but [$562.00] $418.00
plus
[6.40]
5.40% of
not over $21,600 excess
over $14,400
Over $21,600 but [$1,022.00] $806.00
plus
[6.80]
5.80% of
not over $28,800 excess
over $21,600
Over $28,800 but [$1,512.00] $1,224.00
plus [7.20]
6.20% of
not over $36,000 excess over $28,800
Over $36,000 but [$2,030.00] $1,670.00
plus 7.60%
of
not over $54,000 excess over $36,000
Over $54,000 but [$3,398.00] $3,038.00
plus
7.90% of
not over $72,000 excess
over $54,000
Over $72,000 but [$4,820.00] $4,460.00
plus
8.25% of
not over $225,000 excess
over $72,000
Over $225,000 but [$17,443.00] $17,083.00
plus
9.00% of
not over $262,500 excess
over $225,000
Over $262,500 but [$20,818.00] $20,458.00
plus
10.00% of
not over $300,000 excess
over $262,500
Over $300,000 [$24,568.00] $24,208.00
plus
11.00% of
excess over $300,000.
(c)
There is hereby imposed on the taxable income of (1) every unmarried individual
(other than a surviving spouse, or the head of a household) and (2) on the taxable
income of every married individual who does not make a single return jointly with
the individual's spouse under section 235-93 a tax determined in accordance with
the following table:
In
the case of any taxable year beginning after December 31, 2001:
If
the taxable income is: The tax shall be:
Not
over $2,000 1.40% of taxable income
Over
$2,000 but $28.00 plus 3.20% of
not
over $4,000 excess over $2,000
Over
$4,000 but $92.00 plus 5.50% of
not
over $8,000 excess over $4,000
Over
$8,000 but $312.00 plus 6.40%
of
not
over $12,000 excess over $8,000
Over
$12,000 but $568.00 plus 6.80%
of
not
over $16,000 excess over $12,000
Over
$16,000 but $840.00 plus 7.20%
of
not
over $20,000 excess over $16,000
Over
$20,000 but $1,128.00 plus 7.60%
of
not
over $30,000 excess over $20,000
Over
$30,000 but $1,888.00 plus 7.90%
of
not
over $40,000 excess over $30,000
Over
$40,000 $2,678.00 plus 8.25%
of
excess
over $40,000.
In
the case of any taxable year beginning after December 31, 2006:
If
the taxable income is: The tax shall be:
Not
over $2,400 1.40% of taxable income
Over
$2,400 but $34.00 plus 3.20% of
not
over $4,800 excess over $2,400
Over
$4,800 but $110.00 plus 5.50%
of
not
over $9,600 excess over $4,800
Over
$9,600 but $374.00 plus 6.40%
of
not
over $14,400 excess over $9,600
Over
$14,400 but $682.00 plus 6.80%
of
not
over $19,200 excess over $14,400
Over
$19,200 but $1,008.00 plus 7.20%
of
not
over $24,000 excess over $19,200
Over
$24,000 but $1,354.00 plus 7.60%
of
not
over $36,000 excess over $24,000
Over
$36,000 but $2,266.00 plus 7.90%
of
not
over $48,000 excess over $36,000
Over
$48,000 $3,214.00 plus 8.25%
of
excess
over $48,000.
In the case of any taxable year beginning after December 31, 2017:
If the taxable income is: The tax shall be:
Not
over $2,400 [1.40] 0.40%
of taxable
income
Over
$2,400 but [$34.00] $10.00
plus
[3.20]
2.20% of
not over $4,800 excess over $2,400
Over
$4,800 but [$110.00] $62.00
plus
[5.50]
4.50% of
not over $9,600 excess over $4,800
Over
$9,600 but [$374.00] $278.00
plus
[6.40]
5.40% of
not over $14,400 excess over $9,600
Over
$14,400 but [$682.00] $538.00
plus
[6.80]
5.80% of
not over $19,200 excess over $14,400
Over
$19,200 but [$1,008.00] $816.00
plus
[7.20]
6.20% of
not over $24,000 excess over $19,200
Over
$24,000 but [$1,354.00] $1,114.00
plus 7.60% of
not over $36,000 excess over $24,000
Over
$36,000 but [$2,266.00] $2,026.00
plus 7.90% of
not over $48,000 excess over $36,000
Over
$48,000 but [$3,214.00] $2,974.00
plus 8.25% of
not over $150,000 excess over $48,000
Over
$150,000 but [$11,629.00] $11,389.00
plus 9.00% of
not over $175,000 excess over $150,000
Over
$175,000 but [$13,879.00] $13,639.00
plus 10.00% of
not over $200,000 excess over $175,000
Over
$200,000 [$16,379.00] $16,139.00
plus 11.00% of
excess over $200,000."
SECTION 5. Section 235-55.85, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Each individual taxpayer may claim a refundable food/excise tax credit multiplied by the number of qualified exemptions to which the taxpayer is entitled in accordance with the table below; provided that a husband and wife filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.
Adjusted gross income
for
taxpayers filing
a
single return Credit per exemption
Under $5,000 [$110] $220
$5,000 under $10,000 [$100] $200
$10,000 under $15,000 [$ 85] $170
$15,000 under $20,000 [$ 70] $140
$20,000 under $30,000 [$ 55] $110
$30,000 and over $ 0.
Adjusted gross income
for heads of household,
married individuals filing
separate returns, and
married couples filing
joint returns Credit per exemption
Under $5,000 [$110] $220
$5,000 under $10,000 [$100] $200
$10,000 under $15,000 [$ 85] $170
$15,000 under $20,000 [$ 70] $140
$20,000 under $30,000 [$ 55] $110
$30,000 under $40,000 [$ 45] $90
$40,000 under $50,000 [$ 35] $70
$50,000 and over $ 0."
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall apply to taxable years beginning after December 31, 2017.
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INTRODUCED BY: |
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Report Title:
Rental Motor Vehicle Surcharge Tax; Income Tax Rates
Description:
Lowers the income tax rates for the lowest six income brackets. Increases the rental motor vehicle surcharge tax. Requires the increased revenue in the rental motor vehicle surcharge tax to be deposited into the general fund to offset the lower income tax rates. Increases the refundable food/excise tax credit.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.