Report Title:

Police Officers

Description:

Provides members of collective bargaining unit 12 (police officers) with a tax credit for health insurance premiums. Provides credit of up to $960 per year for single coverage and $2,400 per year for family coverage. (SB3019 HD1)

THE SENATE

S.B. NO.

3019

TWENTY-SECOND LEGISLATURE, 2004

S.D. 1

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

RELATING TO HEALTH BENEFITS.

 

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

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-    Health benefits tax credit. (a) There shall be allowed to each eligible taxpayer subject to the taxes imposed by this chapter, a health benefits tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter, for the taxable year in which the credit is properly claimed.

(b) The amount of the credit shall be as follows:

(1) For eligible taxpayers who receive single health coverage, the tax credit shall be $80 per month or $960 per year; or

(2) For eligible taxpayers who receive family health coverage, the tax credit shall be $200 per month or $2,400 per year.

(c) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credit shall be refunded to the taxpayer.

(d) The director of taxation shall:

(1) Adopt any rules necessary for the implementation of the tax credit under this section, pursuant to chapter 91;

(2) Prepare any forms necessary to claim a tax credit under this section; and

(3) Require proof of the claim for the tax credit.

(e) All claims, including any amended claims, for the tax credits under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(f) No later than two months after the close of each fiscal year, the director of taxation shall report to the director of finance of each county the total cost of all health benefits tax credits claimed and authorized under this section for that county for that fiscal year. No later than six months following the end of the fiscal year, each county shall reimburse the State in an amount equal to the total cost reported by the department of taxation to the director of finance of that county for that fiscal year; except that reimbursement for fiscal year 2003-2004 shall be made no later than July 1, 2005. Each yearly report shall also include any adjustments made to earlier years such as additional credits allowed for amended claims.

(g) As used in this section, "eligible taxpayer" means a taxpayer who is:

(1) A member of collective bargaining unit 12 under section 89-6; and

(2) Not claimed or otherwise eligible to be claimed as a dependent by another taxpayer for Hawaii state income tax purposes."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2003.