HI HB1253

Establishes a 0.5% long-term care surcharge on gross proceeds and income taxable under Hawaii's general excise tax (chapter 237) and use tax (chapter 238), effective on a date to be specified.

Creates a long-term care benefits trust fund to receive all surcharge revenues, which shall be used exclusively to pay defined benefits and administrative expenses for the long-term care financing program under chapter 346C.

Establishes a defined benefit of $70 per day up to 365 days, payable to eligible individuals after a 30-day waiting period, beginning no earlier than the fifth year of surcharge collections; benefit amount adjustable by the board of trustees.

Requires individuals to have paid Hawaii resident income tax for 10 years to be fully vested; individuals earn one-tenth of benefits for each year of tax payment, with one year of non-payment allowed before forfeiture penalties apply.

Appropriates funds to the department of taxation for fiscal years 2015-2016 and 2016-2017 to cover start-up and implementation costs for collection of the surcharge.