HB1190 Summary

• Establishes a 1% wealth asset tax on individual taxpayers holding more than $20,000,000 in assets within Hawaii, applied to net worth exceeding the $20,000,000 threshold.

• Requires married individuals to file separately based on individual assets only, not joint assets, and allows credits for wealth taxes paid to other states on the same assets.

• Defines taxable assets to include real property, stocks, business interests, bonds, cash deposits, farm assets, mutual funds, options, futures contracts, art, offshore financial assets, pension funds, debts owed to taxpayer, and other assets.

• Requires assets belonging to claimed dependents exceeding $50,000 to be included in the taxpayer's state net worth for tax calculation purposes.

• Applies to taxable years beginning after December 31, 2023, with the Department of Taxation authorized to adopt rules for valuation, reporting, and administration of the tax.