Hawaii residents can expect higher taxes and fees as early as this summer under several financial bills that have survived the halfway point of the Hawaii Legislature.
While some money bills have died and others have been significantly altered, a host of tax increases are expected to become law to help the state address a projected $900 million shortfall over the next two years.
Still in play are proposals that would tax pension income, increase the state’s alcohol tax, hike the vehicle weight tax, and temporarily cap itemized deductions on income tax returns, among others. The only direct tax increase that lawmakers appear to have completely nixed is the plan to impose a soda tax on sugary beverages.
What it Does: Imposes the state income tax on pensions of single and married taxpayers filing separately with federal adjusted gross income of $100,000 a year, heads of households and surviving spouses who earn $150,000, and couples that make $200,000. It also repeals the state income tax deduction using the same income thresholds. Single filers with federal adjusted gross income of $100,000 a year, heads of households and surviving spouses making $150,000, and couples that make $200,000 would lose the deduction.
The thresholds are much lower than those proposed by Abercrombie and would bring in a lot less revenue.