Committee advances HB 476 HD1, notes multi-year revenue estimates for higher capital‑gains rate

The House Committee on Economic Development and Technology voted to pass HB 476 with amendments (HD1) that change the effective date (committee noted a deferral to July 1, 3000 for drafting purposes) and include committee notes summarizing prior Department of Taxation data on expected revenue from raising the capital-gains rate.

Devin Thomas of Hawaii Appleseed testified in support, urging taxing long-term capital gains at rates comparable to ordinary income and stating that “80% of the capital gains go to people earning over $400,000.” The Department of Taxation’s representative (Garrison) provided comments to the committee and said DOTAX would follow up with specific research and revenue estimates.

At decision making the chair said committee notes would cite DOTAX figures from earlier hearings estimating the amendment would generate about $53,700,000 in one fiscal year, $55,500,000 in the next, and $57,000,000 in the following year, and that those figures are older and need updating. Representative Matsumoto recorded a reservation on the vote citing concerns raised by the Maui Chamber of Commerce and wildfire recovery context.

Why it matters: The bill targets state tax policy and distribution of tax burdens; testimony framed the change as a tax-fairness measure likely to affect high earners disproportionately. Committee notes include legacy fiscal estimates and the committee requested updated DOTAX analysis as the bill advances.

Committee action: HB 476 advanced with HD1; committee notes included dated DOTAX estimates and a reservation was recorded by one member at the vote.