THE SENATE	S.B. NO.	3289
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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

SECTION 1. Section 236E-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild, stepsibling, and equivalent adoptive relationships."

SECTION 2. Section 236E-7, Hawaii Revised Statutes, is amended to read as follows:

"§236E-7 Hawaii taxable estate. For the purposes of this chapter, "Hawaii taxable estate" means:

(1) For residents, the federal taxable estate under section 2051, et seq., of the Internal Revenue Code [but without regard for the], except that:

(A) The deduction for state death taxes paid under section 2058 of the Internal Revenue Code[;] shall not be operative; and

(B) The marital deduction under section 2056 of the Internal Revenue Code shall apply to the passage of any interest in property to any immediate family member;

(2) For nonresidents, the federal taxable estate under section 2051, et seq., of the Internal Revenue Code, [but without regard for the], except that:

(A) The deduction for state death taxes paid under section 2058 of the Internal Revenue Code[,] shall not be operative; and

(B) The marital deduction under section 2056 of the Internal Revenue Code shall apply to the passage of any interest in property to any immediate family member,

multiplied by a fraction, the numerator of which is the value of the property in the State subject to tax under this chapter, and the denominator of which is the federal gross estate; and

(3) For nonresidents not citizens, the federal taxable estate determined under section 2106 of the Internal Revenue Code, but without regard for the deduction for state death taxes paid under section 2106(a)(4) of the Internal Revenue Code, multiplied by a fraction, the numerator of which is the value of the property with a situs in the State subject to tax under this chapter, and the denominator of which is the federal gross estate."

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 Statutory material to be repealed is bracketed and stricken.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 and shall apply to decedents dying or taxable transfers occurring after December 31, 2023.

INTRODUCED BY:

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Report Title:

Estate Tax; Marital Deduction; Immediate Family Members

Description:

Amends the definition of Hawaii taxable estate to provide that the marital deduction under section 2056 of the Internal Revenue Code shall apply to the passage of any interest in property to any immediate family member.

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