Rep. Matthew S. LoPresti

Suspends temporarily the exemptions for certain persons and certain amounts of gross income or proceeds from the general excise tax and requires the payment of both taxes at a four per cent rate. Specifies that the transient accommodations tax collected on resort time share vacation units shall be on the gross rental or gross rental proceeds. Part I effective 7/1/2022, and sunsets on 6/30/2026. Part II effective 7/1/2021.

Specifies that plans of correction and the status of corrective actions for care facilities shall be added to reports by the department of health within five working days. Clarifies, for reporting purposes, that the conclusion of an inspection occurs after the initial visit to a facility is completed.

Increases the personal income tax rate and implements a rate recapture mechanism that phases out lower tax brackets for high earners for taxable years beginning after 12/31/2020. Increases the tax on capital gains. Increases the corporate income tax and establishes a single corporate income tax rate. From 7/1/2021 through 6/30/23, temporarily repeals certain general excise tax exemptions. Increases conveyance taxes for the sale of properties valued at $1,000,000 or greater.

Requires DOTAX to audit telecommunications companies operating in Hawaii to identify past underpayments of gross receipts taxes and property taxes, if any, dating back to January 1, 1990. Requires all telecommunications carriers that operate in Hawaii to use generally accepted accounting principles in calculating their tax liabilities to the State and counties.

Bans the sale of flavored tobacco products. Prohibits mislabeling of e-liquid products containing nicotine. Establishes fines and penalties for violations. Includes heated tobacco products among the electronic smoking devices that are subject to restrictions under law.

Establishes an implementation board to review, investigate, and study the feasibility of establishing a state-owned bank. Requires a report to the legislature prior to the regular session of 2022.

Requires the University of Hawaii economic research organization to conduct a comprehensive study and submit a report to the legislature about a policy approach that encourages manufacturers to take on the costs of end-of-life product management.

Establishes a refundable income tax credit equal to twenty per cent of the federal child tax credit allowed and properly claimed on a taxpayer's federal tax return. Applies to taxable years beginning after 12/31/2020.

Requires the department of taxation to share information with the department of labor and industrial relations for the purposes of enforcing the tip credit. Requires the department of taxation to provide an online tool or program to employers to determine compliance with the tip credit. Increases the minimum wage to $15.00 per hour by 2024 and indexes future annual increases to the median wage for all occupations in the State. Beginning 01/01/2022, adjusts the tip credit to 50 cents for every dollar above a certain amount. Requires written notice to an affected tipped employee.

Requires the department of education to establish and administer a career and technology program that will provide aviation and aviation mechanics education and training to high school students.