Proposed state improvement surcharge

In the past few legislative sessions, there always had been one or two proposals to raise taxes in a big way. Some of them got pretty far along the road to becoming law, and some of them actually became law. You might recall that in 2017, Act 107 permanently reinstated the “temporary” 9%, 10% and 11% income tax brackets that we thought we got rid of in 2016. In 2018, a proposed constitutional amendment to allow the state to surcharge the counties’ real property tax made it to the general election ballot, only to be voided by the Hawai‘i Supreme Court in the 11th hour. In 2019, Act 3 hoisted the top rate of our estate tax to 20%, tying Washington state for the highest estate tax rate in the country.