HI SCR59

Requests the Tax Review Commission to evaluate whether Hawaii's standard deduction and personal exemption under chapter 235, Hawaii Revised Statutes, should be increased or conformed with the Internal Revenue Code.

Current Hawaii standard deductions are $4,400 (joint filers), $3,212 (head of household), and $2,200 (single filers), with a personal exemption of $1,144, all lower than federal amounts.

Directs the Tax Review Commission to consider whether standard deductions and personal exemptions should be indexed to inflation, as provided under the Internal Revenue Code.

Requires the Tax Review Commission to include revenue impact estimates for its recommendations and any alternatives considered in its final report to the Governor and Legislature.

Hawaii's tax law does not currently provide automatic adjustment for inflation, unlike the federal Internal Revenue Code which indexes standard deductions, personal exemptions, and tax brackets annually.