SB 430 Hawaii Senate · 2026 Regular Session

RELATING TO TAXATION.

SB 430 requires Hawaii's Department of Taxation to pay interest on tax refunds at the same rate used by the federal government. This directly affects taxpayers who receive state tax refunds, ensuring they earn interest comparable to federal refund rates. The key mechanism is mandating the state match the federal interest rate for all refund payments. The bill takes effect on July 1, 2025.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 16, 2025 Last action Dec 8, 2025

Maddy AI version diff · 1 comparison

What changed between versions

SB430 → SB430_SD1 · 3 edits

MINOR

The bill was updated from a standard introduction to a Senate Draft version (SD1), which includes significant changes to the effective date and interest rate calculations. The most critical policy change is the new effective date of July 1, 2050, replacing the previous immediate or 2025 start, while also clarifying that interest rates will be tied to specific federal tax code provisions applicable to January 1st of each year.

Scope change

The bill's applicability was modified to apply to taxable years beginning after December 31, 2024, but the act itself is now scheduled to take effect on July 1, 2050.

TIMELINE

The effective date of the Act was changed from immediate approval to July 1, 2050, creating a long delay before the law goes into force.

The summary description of the bill was updated to reflect the new July 1, 2025 effective date (likely a drafting error or interim placeholder) and added the SD1 designation.

REQUIREMENT

The interest rate calculation for tax refunds was clarified to use the federal rate applicable to the first day of January for each year, rather than a generic rate.

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

Mar 4, 2025

Committee

Referred to FIN, referral sheet 18

lower

Feb 27, 2025

Introduced

Received from Senate (Sen. Com. No. 25) in amended form (SD 1).

lower

Feb 27, 2025

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

Feb 18, 2025

Upper · Passed

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

upper

Feb 12, 2025

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, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 7, 2025

Upper · Passed

The committee(s) on WAM has scheduled a public hearing on 02-12-25 10:00AM; Conference Room 211 & Videoconference.

upper

Jan 21, 2025

Committee

Referred to WAM.

upper

Jan 16, 2025

Introduced

Introduced.

upper

1 primary · 0 co-sponsors