Bill > HB1235

This bill establishes a new wealth asset tax in Hawaii that applies to individuals with net worth exceeding $20 million, requiring them to pay a 1% tax on assets above that threshold. The tax would cover a broad range of asset types, including real property, stocks (in both public and private corporations), partnerships, hedge funds, bonds, cash, farm assets, mutual funds, art, collectibles, offshore financial assets, and pension funds. Married individuals must file separate returns based on their individual assets, and taxpayers can subtract any wealth asset taxes paid to other states from their state tax liability. The bill requires assets to be reported alongside regular income tax filings, and assets belonging to dependents over $50,000 will be considered part of the taxpayer's net worth. The Department of Taxation is tasked with developing specific rules for asset valuation, reporting requirements, and implementation details, and must submit proposed legislation with these specifics to the legislature before the 2026 legislative session. The tax would take effect for taxable years beginning after December 31, 2025, and is designed to generate revenue from individuals with significant accumulated wealth while providing mechanisms for precise asset assessment and tax calculation.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1235&year=2026