Relating To Constitutional Tax Refund For Resident Taxpayers..
Impact
The act stipulates that to qualify for this tax refund, taxpayers must have filed an individual income tax return for the 2021 taxable year, and they must meet certain residency and eligibility criteria. Notably, individuals who are dependents on another taxpayer’s return, those who have been incarcerated for the entire tax year, or those with felony convictions are excluded from eligibility. This could significantly affect low-income individuals and families, particularly those navigating criminal justice issues. The bill thus aims to provide financial relief to a segment of the population deemed eligible while aiming to curb refund claims from those who do not fit the prescribed categories.
Summary
SB3100 is a legislative act in Hawaii that establishes a one-time general income tax refund for qualifying resident taxpayers based on the provisions outlined in the state constitution. Specifically, Article VII, section 6 of the Hawaii Constitution allows for tax refunds when the general fund balance exceeds 5% of general fund revenues for two consecutive fiscal years. Given that these criteria have been met, SB3100 aims to distribute a tax refund to eligible residents for the 2021 tax year. The refund is structured as $100 multiplied by the number of exemptions claimed by the taxpayer, reinforcing the importance of qualification through exemption credits.
Contention
While the bill primarily seeks to provide financial benefits to qualifying residents, there are points of contention surrounding the eligibility criteria, especially concerning the exclusions based on criminal history. Advocates for social justice argue that disqualifying individuals with felony convictions or those who have been in youth correctional facilities may perpetuate financial hardships for already vulnerable populations. Critics suggest that the legislation could further marginalize residents who have served their time and are seeking to reintegrate into society. Overall, the debate hinges on balancing the intent of providing tax relief with ensuring fairness in eligibility.
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.