2022 Hawaii Legislative Watch: Taxes

Every year, there are an overwhelming number of issues proposed, discussed, discarded, and passed during the 60-day legislative session. When I last checked, there are 5,060 2021 and 2022 House and Senate Bills under consideration.

This week, let’s take a quick look at some of the tax credits and increases that are being discussed.

3 tax exemptions and credits to watch:

1. No taxes on groceries and other necessary items. HB27, HB638, HB1590, HB1904, HB1919, SB361 SD2, SB608, SB849, SB2431, SB2863, SB3233. Various bills would exempt food nonprescription drugs, medical services, and feminine hygiene products from the general excise tax.
Thoughts: I don’t understand why we haven’t already passed legislation to exempt food and medical services from the general excise tax.

2. Tax credit for low-income renters. HB131 HD1, HB1513, SB302 SD2, SB2165. Would increase the amount of the tax credit for individuals and households and the adjusted gross income eligibility cap for the income tax credit for low-income household renters using tax brackets for individuals and different categories of households.

3. Business Tax credit for telework. HB836 Would establish a telework tax credit for employers who allow telework for at least thirty per cent of their employees.

3 tax increases and a fine to watch:

1. Higher personal and business taxes. HB3, SB56 SD1, SB276, SB3250. Various bills would increase the personal income tax rate, phase out lower tax brackets for high earners, increase the tax on capital gains, and increases the corporate income tax.

2. Higher general excise tax. SB1265, SB1266. Would increase the general excise tax to 4.5%. SB1312. Would impose a new 1.5 per cent sustainable tourism tax beginning on 7/1/2022, to fund the sustainable Hawaii workforce program.

3. General excise tax on vacant residential property. SB2547. Would establish a general excise tax surcharge on an owner that allows a residential real property to remain vacant for 120 days or more a year.
Thoughts: I understand the intent (to make more housing available), this seems to force individuals and families to become landlords.

PLUS: New fine for chicken lovers. HB524. Would establish a $500 civil fine for the feeding or attempted feeding of any feral chicken.
Thoughts: We have more important things to enforce.

What are your thoughts, questions, and concerns about these issues? The 2022 Hawaii Legislature adjourns on May 5. Please think about these issues and how they may affect you, everyone around you, and future generations. Whether you have concerns or feel strongly about an issue, speak up, talk about it, and be part of the discussion! Find out how to contact your legislators.

Explore posts in the same categories: Government, Taxes

Tags: 2022 Hawaii Legislature, Hawaii Legislature, Hawaii Taxes

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