Bill > HB476

This bill modifies the capital gains tax rates for individuals, estates, trusts, and corporations in Hawaii. For individuals, the bill removes the existing 7.25% tax rate (indicated by del tags with [7.25]) but does not specify a new rate, which suggests the rate will be determined elsewhere or left blank pending future legislation. For corporations, the bill removes the existing 4% tax rate on net capital gains and similarly does not replace it with a specific new rate. The bill applies to taxable years beginning after December 31, 2024, but is set to take effect on July 1, 2050. The proposed changes affect how capital gains are taxed by modifying the calculation method for tax liability, potentially allowing for a different tax treatment of capital gains income. The bill appears to be a placeholder or framework for future tax rate adjustments, as the specific new rates are not defined in the provided text.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=476&year=2026