REPORT TITLE:
Standard Deduction


DESCRIPTION:
Conforms the State's standard deduction to the Internal Revenue
Code.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
SENATE                                  S.B. NO.           2049
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE INCOME TAX.



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

 1      SECTION 1.  Section 235-2.4, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  Section 63 (with respect to taxable income defined) of
 
 4 the Internal Revenue Code shall be operative for the purposes of
 
 5 this chapter[, except that the standard deduction amount in
 
 6 section 63(c) of the Internal Revenue Code shall instead mean:
 
 7      (1)  $1,900 in the case of:
 
 8           (A)  A joint return as provided by section 235-93; or
 
 9           (B)  A surviving spouse (as defined in section 2(a) of
 
10                the Internal Revenue Code);
 
11      (2)  $1,650 in the case of a head of household (as defined
 
12           in section 2(b) of the Internal Revenue Code);
 
13      (3)  $1,500 in the case of an individual who is not married
 
14           and who is not a surviving spouse or head of household;
 
15           or
 
16      (4)  $950 in the case of a married individual filing a
 
17           separate return.
 
18      Section 63(c)(4) shall not be operative in this State.
 
19 Section 63(c)(5) shall be operative, except that the limitation
 

 
Page 2                                                     
                                     S.B. NO.           2049
                                                        
                                                        

 
 1 on basic standard deduction in the case of certain dependents
 
 2 shall be the greater of $500 or such individual's earned income.
 
 3 Section 63(f) shall not be operative in this State.
 
 4      The standard deduction amount for nonresidents shall be
 
 5 calculated pursuant to section 235-5]."
 
 6      SECTION 2.  Section 235-5, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (d) to read as follows:
 
 8      "(d)  The [standard deduction as provided in section 235-2.4
 
 9 and] personal exemptions [as] provided in section 235-54 shall be
 
10 allowed only to the extent of the ratio of the adjusted gross
 
11 income attributed to this State to the entire adjusted gross
 
12 income computed without regard to source in the State."
 
13                                                                   14 New statutory material is underscored.
 
15      SECTION 4.  This Act, upon its approval, applies to taxable
 
16 years beginning after December 31, 2000.
 
17 
 
18                           INTRODUCED BY:  _______________________