HI HB812

Temporarily exempts unemployment compensation income from Hawaii state income taxation for taxable years beginning after December 31, 2010 through December 31, 2015.

Amends Hawaii Revised Statutes Section 235-2.3(b) to add Internal Revenue Code Section 85 (unemployment compensation) to the list of IRC provisions that are not operative for Hawaii income tax purposes.

Removes the requirement for state income tax withholding on unemployment compensation benefits and repeals Section 235-69, which previously allowed elective 5% state income tax withholding.

Updates Section 383-163.6 to eliminate references to Hawaii state income tax withholding while maintaining provisions for federal and other states' or localities' income tax withholding from unemployment benefits.

Allows the exemption to sunset on December 31, 2015, with affected statutory sections reverting to their pre-Act form on January 1, 2016.