HI HB1253

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

Creates a long-term care benefits trust fund to receive all surcharge revenues, which shall be used exclusively to pay defined benefits for long-term care services and administrative expenses with no transfers to other funds permitted.

Provides eligible individuals who have paid Hawaii resident income tax for 10 years with a defined benefit of $70 per day up to 365 cumulative days for long-term care services, commencing no earlier than the fifth year after surcharge collection begins.

Implements a vesting system where individuals earn one-tenth of the defined benefit for each year of income tax payment, with one year of non-payment allowed before forfeiting vesting credits.

Appropriates funds to the department of taxation for fiscal years 2015-2016 and 2016-2017 to implement and collect the surcharge, and requires annual actuarial reports to ensure the program remains actuarially sound.