HI HCR158

Department of Taxation requested to study the fairness of Hawaii taxation law regarding itemized deductions, particularly following enactment of the American Taxpayer Relief Act of 2012.

Study should consider repealing Act 97 (Session Laws of Hawaii 2011), which imposed permanent and temporary limitations on itemized deductions for taxable years after 2010.

Study should examine feasibility of aligning Hawaii taxation law on itemized deductions with Internal Revenue Code language and assess impact on taxpayers claiming deductions for casualty/theft losses, gambling losses, investment interest, and medical/dental expenses.

Department of Taxation must submit report to Legislature no later than twenty days before the 2014 Regular Session, including study results and any proposed legislation.