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 year 2001.

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.
 

/s/
MARIE Y. OKAMURA
Director of Taxation

1. 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."
2. 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 taxable year;
 (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.