HI SB2478

Establishes a 0.5% long-term care surcharge on state general excise tax and use tax beginning January 1, 2018, with revenues dedicated to a long-term care benefits trust fund.

Creates the long-term care benefits trust fund to pay defined benefits of $70 per day for up to 365 days of qualifying long-term care services, with benefit payments to commence after the fifth year of surcharge collections.

Establishes eligibility requirements: individuals must have filed Hawaii resident income tax returns for 10 years to be fully vested, earning one-tenth of the benefit per year of filing, with one year of non-filing allowed without penalty.

Requires the board of trustees to obtain annual actuarial reports for the first three years and every three years thereafter to certify program solvency and recommend necessary tax adjustments to the legislature.

Appropriates funds to the department of taxation for implementation and collection costs, with the bill taking effect July 1, 2050.