THE SENATE

S.B. NO.

555

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAX CREDITS.

 

 

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

 


     SECTION 1.  Section 235-55.85, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsections (b) and (c) to read

     "(b)  Each resident individual taxpayer may claim a refundable food/excise tax credit multiplied by the number of qualified exemptions to which the taxpayer is entitled in accordance with the table below; provided that a husband and wife filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

     Adjusted gross income       Credit per exemption

     Under [$5,000] $5,800                 [$85] $100

 [$5,000]   $5,800 under [$10,000] $11,500   [75] $ 85

[$10,000] $11,500 under [$15,000] $17,300   [65] $ 75

[$15,000] $17,300 under [$20,000] $23,000   [55] $ 65

[$20,000] $23,000 under [$30,000] $34,500   [45] $ 50

[$30,000] $34,500 under [$40,000] $46,000   [35] $ 40

[$40,000] $46,000 under [$50,000] $57,500   [25] $ 30

[$50,000] $57,500 and over                  $0

     (c)  [For the purposes of this section, a qualified exemption is defined to include those exemptions permitted under this chapter; provided that no additional exemption may be claimed by a taxpayer who is sixty-five years of age or older; provided that a person for whom exemption is claimed has physically resided in the State for more than nine months during the taxable year; and provided further that multiple exemptions shall not be granted because of deficiencies in vision or hearing, or other disability.  For purposes of claiming this credit only, a minor child receiving support from the department of human services of the State, social security survivor's benefits, and the like, may be considered a dependent and a qualified exemption of the parent or guardian.] For any taxable year beginning in a calendar year after 2016, each dollar amount contained in subsection (b) shall be increased by an amount equal to such dollar amount multiplied by the percentage, if any, by which the consumer price index for the preceding calendar year exceeds the consumer price index for the calendar year 2015."

     2.  By amending subsection (g) to read:

     "(g)  For the purposes of this section[, "adjusted]:

     "Adjusted gross income" means adjusted gross income as defined by the Internal Revenue Code.

     "Consumer price index" means the consumer price index for all urban consumers published by the United States Department of Labor.

     "Qualified exemption" means those exemptions permitted under this chapter; provided that no additional exemption may be claimed by a taxpayer who is sixty-five years of age or older; provided further that a person who claims such an exemption shall have physically resided in the State for more than nine months during the taxable year; provided further that multiple exemptions shall not be granted because of deficiencies in vision or hearing or other disability.  For purposes of claiming this credit only, a minor child receiving support from the department of human services of the State, social security survivor's benefits, and the like, may be considered a dependent and a qualified exemption of the parent or guardian."

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

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2015.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Refundable Food/Excise Tax Credit

 

Description:

Amends the refundable food/excise tax credit.  Ties the credit to increases in the consumer price index.  Applies to taxable years beginning after 12/31/2015.

 

 

 

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