HI HB1159

Requires refundable tax credits owed to individual and corporate income taxpayers be paid via debit card instead of cash or check, effective for taxable years beginning after December 31, 2010.

Debit cards must be issued without charge or fees and can only be used to purchase goods or services within Hawaii from persons licensed under chapter 237 (general excise tax licensees).

Designates an executive department to maintain taxpayer accounts in the tax reserve fund, process payments when cards are used, and either administer the program directly or contract with a third party to do so.

Allows sellers to be charged a reasonable transaction fee to cover program costs, and permits replacement of damaged, lost, or stolen cards with unused balance transferred to a new card.

Automatically repeals on December 31, 2012, with prior law reinstated, making this a temporary two-year measure designed to keep tax refund dollars circulating within the state economy.