§235-54  Exemptions.  (a)  [See noteat the end of this section for the different repeal and reenactment dates andother requirements of the 2009 amendments.  Additionally, this subsection (a)is effective until December 31, 2010.  For subsection (a) effective on January1, 2011, see below.]  In computing the taxable income of any individual,there shall be deducted, in lieu of the personal exemptions allowed by theInternal Revenue Code of 1986, as amended, and except as provided in subsection(c), personal exemptions computed as follows:  Ascertain the number ofexemptions which the individual can lawfully claim under the Internal RevenueCode, add an additional exemption for the taxpayer or the taxpayer's spouse whois sixty-five years of age or older within the taxable year, and multiply thatnumber by $1,040, for taxable years beginning after December 31, 1984.  Anonresident shall prorate the personal exemptions on account of income fromsources outside the State as provided in section 235-5.  In the case of anindividual with respect to whom an exemption under this section is allowable toanother taxpayer for a taxable year beginning in the calendar year in which theindividual's taxable year begins, the personal exemption amount applicable tosuch individual under this subsection for such individual's taxable year shallbe zero.

(a)  [Subsection effective January 1, 2011. For subsection effective until December 31, 2010, see above.]  In computingthe taxable income of any individual, there shall be deducted, in lieu of thepersonal exemptions allowed by the Internal Revenue Code of 1986, as amended,and except as provided in subsection (c), personal exemptions computed asfollows:  Ascertain the number of exemptions which the individual can lawfullyclaim under the Internal Revenue Code, add an additional exemption for thetaxpayer or the taxpayer's spouse who is sixty-five years of age or olderwithin the taxable year, and multiply that number by $1,144, for taxable yearsbeginning after December 31, 1984.  A nonresident shall prorate the personalexemptions on account of income from sources outside the State as provided insection 235-5.  In the case of an individual with respect to whom an exemptionunder this section is allowable to another taxpayer for a taxable yearbeginning in the calendar year in which the individual's taxable year begins,the personal exemption amount applicable to such individual under thissubsection for such individual's taxable year shall be zero.

(b)  In computing the taxable income of anestate or trust there shall be allowed, in lieu of the deductions allowed undersubsection (a), the following:

(1)  An estate shall be allowed a deduction of $400.

(2)  A trust which, under its governing instrument, isrequired to distribute all of its income currently shall be allowed a deductionof $200.

(3)  All other trusts shall be allowed a deduction of$80.

(c)  The phaseout under section 151(d)(3) ofthe Internal Revenue Code of 1986, as amended, shall apply to this section;provided that the threshold income amounts under section 151(d)(3)(C) of theInternal Revenue Code of 1986, as amended, shall be reduced by twenty-five percent for the purposes of this subsection; provided further that the thresholdincome amounts under section 151(d)(3)(C) of the Internal Revenue Code of 1986,as amended, used to determine the twenty-five per cent reduction under thissubsection shall be maintained at the amounts in place on July 1, 2008.

(d)  A blind person, a deaf person, and anyperson totally disabled, in lieu of the personal exemptions allowed by theInternal Revenue Code, shall be allowed, and there shall be deducted incomputing the taxable income of a blind person, a deaf person, or a totallydisabled person, instead of the exemptions provided by subsection (a), theamount of $7,000. [L Sp 1957, c 1, pt of §2; am L 1960, c 4, §1; Supp, §121-11;HRS §235-54; am L 1970, c 90, §2 and c 180, §2; am L 1978, c 181, §1; am L1980, c 241, §2; am L 1985, c 78, §1; am L 1987, c 239, §1(15); am L 1999, c253, §4; am L 2009, c 60, §3; am L Sp 2009, c 14, §1]

 

Note

 

  The L 2009, c 60 amendment of subsection (a) applies totaxable years beginning after December 31, 2010 and is repealed and reenactedon December 31, 2015.  L 2009, c 60, §6(2) and (3).  Effect of amendment onunderpayments.  L 2009, c 60, §4.

  The L Sp 2009, c 14 amendment applies to taxable yearsbeginning after December 31, 2008 and is repealed and reenacted on June 30,2015.  L Sp 2009, c 14, §3.

 

Law Journals and Reviews

 

  Rule of Strict Construction in Tax Cases, a Question ofClassification or Exemption, Arthur B. Reinwald, 11 HBJ 98.

 

Case Notes

 

  Statutes granting exemptions are strictly construed againsttaxpayer.  56 H. 321, 536 P.2d 91.