HI HR127

Requests the Department of Taxation to study the fairness of Hawaii taxation law regarding itemized deductions in light of the American Taxpayer Relief Act of 2012.

Directs the study to consider repealing Act 97 (Session Laws of Hawaii 2011), which placed permanent and temporary limitations on itemized deductions for taxable years after 2010.

Requires examination of bringing Hawaii taxation law into greater conformity with Internal Revenue Code language regarding itemized deductions.

Mandates analysis of how current Hawaii law impacts taxpayers claiming itemized deductions, with emphasis on casualty and theft losses, gambling losses, investment interest, and medical and dental expenses.

Requires the Department of Taxation to submit a report to the Legislature no later than twenty days before the 2014 regular session convening, including proposed legislation.