HI HB1179

Requires the Hawaii Director of Taxation to annually adjust standard deductions, personal exemption amounts, and income tax rate brackets for inflation beginning in taxable years after December 31, 2014.

Adjustments are calculated by multiplying the cost-of-living adjustment (based on the National Consumer Price Index for the twelve-month period ending June 30) by the dollar amounts in sections 235-2.4(a), 235-51(a)-(c), and 235-54, with increases rounded to the nearest $50.

No adjustments are made when the Consumer Price Index for the twelve-month period ending June 30 of the preceding year is less than zero or when the adjustment would reduce previously established standard deduction, personal exemption, and income tax bracket amounts.

Requires the Department of Taxation to submit a report to the legislature no later than twenty days before the 2020 regular session evaluating the implementation and effectiveness of the inflation adjustments.

Sunsets January 1, 2020, with the bill applying to taxable years beginning after December 31, 2014, and ending before January 1, 2020.