THE SENATE

S.B. NO.

2511

THIRTIETH LEGISLATURE, 2020

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to tax relief.

 

 

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 part III to be appropriately designated and to read as follows:

"235- Wagering winnings; waiver. (a) Beginning on January 1, 2021, upon payment of a $ fee, an individual taxpayer may acquire from the department of taxation a written waiver that exempts the taxpayer from reporting as taxable income all wagering or gambling winnings that were acquired by the taxpayer legally outside of the State that would have been otherwise reportable under this chapter and that were accrued during the period of the waiver; provided that:

(1) No waiver to exempt taxpayers under this section shall be issued until the department of taxation has adopted rules pursuant to subsection (d);

(2) The waiver shall be valid for a specific consecutive five-day period during the taxable year to which the waiver applies;

(3) Waivers for multiple five-day periods may be acquired;

(4) The $ fee shall apply to each waiver;

(5) The waiver shall be acquired by the taxpayer at least twenty-four hours before the commencement of the period during which the waiver is effective; and

(6) The waiver shall apply to an individual taxpayer, regardless of whether the taxpayer itemizes tax deductions.

(b) A waiver shall not be transferrable and shall not be combined with any other waiver acquired by any other taxpayer.

(c) Waivers shall be acquired and paid for by credit card on the department of taxation website or on other secure internet-based systems established by the department.

(d) The department of taxation shall adopt rules pursuant to chapter 91 to effectuate this section; provided that the rules shall take effect no later than January 1, 2021."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2020.

 

INTRODUCED BY:

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Report Title:

Wager Winnings; Tax Exemption; Waiver Program

 

Description:

Establishes a waiver program to exempt from income taxation gambling winnings legally acquired outside the State during a consecutive 5-day period, beginning 01/01/2021.

 

 

 

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