SB 2881 Hawaii Senate · 2026 Regular Session

RELATING TO STATE INCOME TAX.

Summary

Provides that taxable income subject to reporting as distribution on Internal Revenue Service Form 1099-R may be subject to withholding at the taxpayer's election. Requires the Department of Taxation to adopt rules and prescribe forms. Applicable to taxable years beginning after 12/31/2026. (CD1)

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

May 2026

Senate Passage

May 2026

House Passage

May 2026

Signed into Law

Jun 2026

Introduced Jan 23, 2026 Signed Jun 9, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

SB2881_HD1 → SB2881_SD1 · 2 edits

MINOR

The bill was transitioned from the House version to the Senate version, updating authorship details and document metadata. The most significant policy change is the removal of a future effective date of July 1, 3000, replacing it with a standard provision that applies upon the bill's approval, while retaining the rule that it affects taxable years starting after December 31, 2026.

Scope change

The bill's applicability was updated to apply upon approval rather than a distant future date, though the specific tax years it covers remain unchanged.

TIMELINE

Removed the specific effective date of July 1, 3000, and replaced it with a general provision stating the Act applies upon approval.

TECHNICAL

Updated author names and document metadata to reflect the transition from the House (HD) to the Senate (SD) version.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 6, 2026

Lower · Passed

Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).

lower

May 6, 2026

Upper · Passed

Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.

upper

May 1, 2026

Lower · Passed

Reported from Conference Committee (Conf Com. Rep. No. 109-26) as amended in (CD 1).

lower

May 1, 2026

Introduced

48 Hrs. Notice (as amended CD 1) 05-06-26.

upper

May 1, 2026

Upper · Passed

Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 109-26).

upper

Apr 30, 2026

Lower · Passed

The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Takenouchi, Kitagawa, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.

lower

Apr 30, 2026

Upper · Passed

The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Kim, Moriwaki, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Apr 29, 2026

Upper · Passed

Conference committee meeting scheduled for 04-30-26 11:00AM; Conference Room 309.

upper

Apr 16, 2026

Amended

Senate disagrees with House amendments.

upper

Apr 16, 2026

Introduced

Received from House (Hse. Com. No. 712).

upper

Apr 14, 2026

Lower · Passed

Passed Third Reading with none voting aye with reservations; none voting no (0) and none excused (0). Transmitted to Senate.

lower

Apr 7, 2026

Lower · Passed

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.

lower

Mar 12, 2026

Committee

Referred to FIN, referral sheet 17

lower

Mar 10, 2026

Introduced

Received from Senate (Sen. Com. No. 313) in amended form (SD 1).

lower

Mar 10, 2026

Upper · Passed

Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Mar 5, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1).

upper

Mar 2, 2026

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: Senator(s) Richards ; 0 No(es): none; and 0 Excused: none.

upper

Feb 27, 2026

Upper · Passed

The committee(s) on WAM has scheduled a public hearing on 03-02-26 10:00AM; Conference Room 211 & Videoconference.

upper

Jan 30, 2026

Committee

Referred to WAM.

upper

Jan 23, 2026

Introduced

Introduced.

upper

4 primary · 0 co-sponsors