HI SB727

Establishes a 0.5% long-term care surcharge on state general excise tax and use tax, effective January 1, 2017, to fund long-term care benefits for eligible Hawaii residents.

Creates a long-term care benefits trust fund into which surcharge revenues are deposited and used exclusively to pay defined benefits and administrative expenses, with no transfers allowed to other state funds.

Provides a defined benefit of $70 per day for up to 365 days of long-term care services, beginning no earlier than five years after surcharge collection starts, available to individuals who have filed Hawaii resident income tax returns for the most recent ten years.

Requires the Director of Taxation to compile annual taxpayer data (name, address, SSN, filing status) for transmission to the board of trustees to determine eligibility and track vesting credits, with strict confidentiality protections.

Appropriates funds to the Department of Taxation for implementation and collection costs and requires annual actuarial reports demonstrating 75-year solvency with recommendations to the legislature.