DEPARTMENT OF TAXATION ANNOUNCEMENT NO. 2001-8
May 4, 2001
RE: Act 119, Session Laws of Hawaii 2001 (Act 119), Relating to Taxation
Act 119 provides a refundable income tax credit (credit) as mandated
by the State Constitution.
Article VII, section 6, of the State Constitution, requires the Legislature
to enact a tax credit or refund if the general fund balance exceeds general
fund revenues by 5 percent two years in a row. 1
This constitutional requirement has been met. The credit is $1
multiplied by the number of qualified exemptions 2
the taxpayer is entitled to claim. The credit applies to taxable
Forms and other tax information are available at the Department's website
at: www.state.hi.us/tax. On Oahu, forms may be ordered
by calling the Department's Forms Request Line at: 587-7572.
Persons who are not calling from Oahu, may call: 1-800-222-7572 (toll-free)
to receive forms by mail or by fax.
MARIE Y. OKAMURA
Director of Taxation
Article VII, section 6, of the State Constitution states
that: "Whenever the state general fund balance at the close of each
of two successive fiscal years exceeds five percent of the general fund
revenues for each of the two fiscal years, the legislature in the next
regular session shall provide for a tax refund or tax credit to the taxpayers
of the State as provided by law."
Act 119 specifies that no additional exemptions may
be claimed by a taxpayer who is sixty-five years of age or older, who has
deficiencies in vision or hearing, or who has other disabilities.
The credit is not available to:
(1) Any person who has been convicted of a felony and who has
been committed to prison and has been physically confined for the full
(2) Any person who would otherwise be eligible to be claimed
as a dependent but who has been committed to a youth correctional facility
and has resided at the facility for the full taxable year; or
(3) Any misdemeanant who has been committed to jail and has been
physically confined for the full taxable year.
Act 119 also deletes the requirement that a person for whom the exemption
is claimed has physically resided in the State for more than nine months
in the taxable year.
AN ON-LINE COPY OF THE ACT (S.B. No. 699, HD1) ON THE CAPITOL WEBSITE
For official copies of acts,
Office of the Lieutenant
Governor, State Capitol, 5th Floor, Honolulu 96813.
Phone: 586-0255, Monday
- Friday, 7:45 am - 4:30 pm