HOUSE OF REPRESENTATIVES	H.B. NO.	133
THIRTY-FIRST LEGISLATURE, 2021		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CAPITAL GAINS.

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

SECTION 1. Section 235-51, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) If a taxpayer has a net capital gain for any taxable year to which this subsection applies, then the tax imposed by this section shall not exceed the sum of:

(1) The tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of:

(A) The taxable income reduced by the amount of net capital gain, or

(B) The amount of taxable income taxed at a rate below [7.25] 9 per cent, plus

(2) A tax of [7.25] 9 per cent of the amount of taxable income in excess of the amount determined under paragraph (1).

This subsection shall apply to individuals, estates, and trusts for taxable years beginning after December 31, 1986."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2020.

Report Title:

Capital Gains Tax; Income Tax; Increase

Description:

Increases the capital gains tax threshold from 7.25 per cent to nine per cent. Applies for tax years beginning after 12/31/2020. Effective 7/1/2050. (HD1)

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