Bill > HB2623

This bill establishes a new "wealth proceeds surcharge" that will be applied to individuals, estates, and trusts, but not corporations, starting with taxable years after December 31, 2026. This surcharge is an additional tax calculated as a percentage of the lesser of the taxpayer's "wealth proceeds" (which is similar to net investment income but with specific adjustments, including gains from certain investments and transfers to specific types of trusts) or their "federal modified adjusted gross income" (which is based on federal adjusted gross income with some modifications) minus a "threshold amount" (defined by federal tax law). For non-residents and for estates and trusts, the surcharge will be prorated based on wealth proceeds allocated to the state. The bill also clarifies that all existing tax laws and penalties will apply to this new surcharge, and the Department of Taxation is authorized to create rules to implement it.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2623&year=2026