Relating To Constitutional Tax Refund For Resident Taxpayers..
Impact
The bill proposes a one-time general income tax refund for individuals who filed an income tax return for the 2021 taxable year. Specifically, eligible taxpayers would receive a refund valued at $100 multiplied by the number of qualifying exemptions they have. The bill outlines strict criteria for qualifying residents, ensuring that individuals with certain felony or misdemeanor convictions do not qualify for the refund. It establishes a clear connection between the state's fiscal health and taxpayer relief, potentially impacting taxpayer sentiment positively during financially prosperous periods.
Summary
House Bill 2132 pertains to providing a constitutional tax refund to resident taxpayers in Hawaii. It aims to implement the provisions stipulated in Article VII, Section 6 of the Hawaii Constitution, which allows for tax refunds or credits under specific fiscal conditions. The bill mandates that whenever the state general fund balance exceeds five percent of general fund revenues for two consecutive fiscal years, a tax refund must be provided to qualifying residents. This bill is designed to ensure taxpayers benefit from the state's financial surplus systematically.
Contention
Despite its potential benefits, HB 2132 could raise questions about fairness and inclusivity in tax refund distribution. The restrictions placed on those with felony or misdemeanor charges could be contentious; opponents may argue that such exclusions unfairly penalize individuals seeking rehabilitation and reintegration into society. Moreover, some residents may feel the qualifications for being deemed a 'qualifying resident taxpayer' might be overly strict, impacting their ability to benefit from state surpluses. As discussions around tax policy and fiscal responsibility continue, the implementation of this bill will likely prompt further debate regarding equity in state taxation and appropriations.
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.