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THE SENATE |
S.B. NO. |
142 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE MORTGAGE INTEREST DEDUCTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 2. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:
"(j) Section 163 (with respect to interest) of the Internal Revenue Code shall be operative for the purposes of this chapter, except that the following provisions shall not be operative for the purposes of this chapter:
(1) Section 163(d)(4)(B) (defining net investment income to exclude dividends);
(2) Section 163(e)(5)(F) (suspension of applicable high-yield discount obligation (AHYDO) rules);
(3) Section 163(h)(3)(F) (limiting mortgage
interest); [and]
(4) Section 163(h)(4)(A)(i)(II)
(definition of qualified residence for home mortgage interest deduction);
(5) Section 163(h)(4)(A)(ii)(II)
(treatment of home mortgage interest deduction for married individuals filing
separately); and
[(4)] (6) Section 163(i)(1) as it applies to
debt instruments issued after January 1, 2010 (defining AHYDO)."
SECTION 3. The department of taxation shall annually calculate the amount of state revenue gained in the previous taxable year by making non-operative section 163(h)(4)(A)(i)(II) and section 163(h)(4)(A)(ii)(II) of the Internal Revenue Code of 1986, as amended, for the purposes of chapter 235, Hawaii Revised Statutes, and, following this calculation, by September 1 of each year, shall report the amount of state revenue gained to the director of finance.
SECTION 4. The department of budget and finance, in consultation with the department of taxation, shall submit a report on the administration of this Act to the legislature no later than twenty days prior to the convening of the 2024, 2025, 2026, and 2027 regular sessions.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022.
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INTRODUCED BY: |
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Report Title:
Income Tax; Mortgage Interest Deduction
Description:
Eliminates the mortgage interest deduction for second homes under Hawaii income tax law. Requires the Department of Taxation to calculate the savings and report the revenue gained to the Director of Finance by September 1 of each year.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.