All Roll Calls
Yes: 211 • No: 0
HawaiiSB 28812025–2026 Regular Session (Year 2)SenateWALLET
RELATING TO STATE INCOME TAX.
Sponsored By: Donna Mercado Kim (Democratic)
Signed by Governor
Summary
Provides that taxable income subject to reporting as distribution on Internal Revenue Service Form 1099-R may be subject to withholding at the taxpayer's election. Requires the Department of Taxation to adopt rules and prescribe forms. Applicable to taxable years beginning after 12/31/2026. Effective 7/1/3000. (HD1)
DOTAXForm 1099-RDistributionsIncome TaxVoluntary WithholdingRulesFIN
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Retirees can choose Hawaii tax withholding
For taxable years beginning after December 31, 2026, you can ask in writing to have Hawaii tax withheld from a taxable distribution reported on Form 1099-R. The payer must withhold the amount you designate and send it to Hawaii’s Department of Taxation. The amount counts toward your Hawaii income tax, and any excess is refundable. Withholding can help you pay tax over time, but it reduces the cash you receive upfront; it does not change the tax you owe.
Sponsors & Cosponsors
Sponsor
Donna Mercado Kim
Democratic • Senate
Cosponsors
Stanley Chang
Democratic • Senate
Rachele Lamosao
Democratic • Senate
Angus L.K. McKelvey
Democratic • Senate
Roll Call Votes
House vote • 5/6/2026
House Floor Vote
Yes: 51 • No: 0
House vote • 4/30/2026
The Conference Committee recommends that the measure be Passed, with Amendments....
Yes: 3 • No: 0
Senate vote • 4/30/2026
The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....
Yes: 3 • No: 0
House vote • 4/14/2026
House Floor Vote
Yes: 51 • No: 0
House vote • 4/9/2026
House Floor Vote
Yes: 49 • No: 0
House vote • 4/7/2026
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The ...
Yes: 16 • No: 0
Senate vote • 3/10/2026
Senate Floor Vote
Yes: 25 • No: 0
Senate vote • 3/2/2026
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT...
Yes: 13 • No: 0
Actions Timeline
Act 118, 06/08/2026 (Gov. Msg. No. 1218).
6/8/2026SenateAct 118, on 06/08/2026 (Gov. Msg. No. 1218).
6/8/2026HouseReceived notice of passage on Final Reading in House (Hse. Com. No. 888).
5/8/2026SenateEnrolled to Governor.
5/8/2026SenatePassed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.
5/6/2026SenatePassed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).
5/6/2026HouseReceived notice of Final Reading (Sen. Com. No. 816).
5/6/2026HouseReported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 109-26).
5/1/2026Senate48 Hrs. Notice (as amended CD 1) 05-06-26.
5/1/2026SenateReported from Conference Committee (Conf Com. Rep. No. 109-26) as amended in (CD 1).
5/1/2026HouseForty-eight (48) hours notice Wednesday, 05-06-26.
5/1/2026HouseThe Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Kim, Moriwaki, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
4/30/2026SenateThe Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Takenouchi, Kitagawa, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
4/30/2026HouseConference committee meeting scheduled for 04-30-26 11:00AM; Conference Room 309.
4/29/2026SenateSenate Conferees Appointed: Kim Chair; Moriwaki, Fevella.
4/21/2026SenateReceived notice of Senate conferees (Sen. Com. No. 718).
4/21/2026HouseHouse Conferees Appointed: Takenouchi Chair; Kitagawa, Gedeon.
4/20/2026HouseReceived notice of appointment of House conferees (Hse. Com. No. 787).
4/20/2026SenateReceived from House (Hse. Com. No. 712).
4/16/2026SenateSenate disagrees with House amendments.
4/16/2026SenateReceived notice of disagreement (Sen. Com. No. 710).
4/16/2026HousePassed Third Reading with none voting aye with reservations; none voting no (0) and none excused (0). Transmitted to Senate.
4/14/2026HouseReported from FIN (Stand. Com. Rep. No. 1984-26) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading.
4/9/2026HousePassed Second Reading as amended in HD 1; placed on the calendar for Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran excused (1).
4/9/2026HouseThe committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
4/7/2026House
Bill Text
Bill Text
Original
SB2881_CD1
SB2881_HD1
SB2881_SD1
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