republic-os/legislation/us/states/hi/2026/sb-2881.md

---
type: "Bill"
title: "RELATING TO STATE INCOME TAX."
description: "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. (CD1)"
jurisdiction: "us/states/hi"
legislature: "Hawaii Legislature"
session: "2026"
identifier: "SB 2881"
citation: "Hawaii SB 2881 (2026)"
classification: ["bill"]
subjects: ["DOTAX", "Distributions", "Form 1099-R", "Income Tax", "Rules", "Voluntary Withholding"]
status: "enacted"
primary_sponsors: ["CHANG", "KIM", "LAMOSAO", "MCKELVEY"]
version_count: 4
action_count: 38
vote_count: 5
first_action: "2026-01-23"
last_action: "2026-06-09"
source: "openstates"
source_identifier: "ocd-bill/757e1866-a4ae-476d-92ab-cc4489e50c78"
source_url: "https://capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2881&year=2026"
source_hash: "810a2ccc511cfd1448c2d66d64c28fc9791107f5d523809c10b915001580ee40"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-hi"]
---

# Hawaii SB 2881 (2026) — RELATING TO STATE INCOME TAX.

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. (CD1)

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **SB2881** (committee substitute) — [source](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2881_.HTM)
2. **SB2881_CD1** (committee substitute) — [source](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2881_CD1_.HTM)
3. **SB2881_HD1** (committee substitute) — [source](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2881_HD1_.HTM)
4. **SB2881_SD1** (committee substitute) — [source](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2881_SD1_.HTM)

## Votes

- The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. — **16–0** (pass) · lower
- Passed Third Reading, as amended (SD 1). — **25–0** (pass) · upper
- The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. — **13–0** (pass) · upper
- The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. — **3–0** (pass) · upper
- The Conference Committee recommends that the measure be Passed, with Amendments. — **3–0** (pass) · lower

## Sponsors

- CHANG — primary (person)
- KIM — primary (person)
- LAMOSAO — primary (person)
- MCKELVEY — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2026-06-09** Act 118, on 06/08/2026 (Gov. Msg. No. 1218). `became-law`
- **2026-06-09** Act 118, 06/08/2026 (Gov. Msg. No. 1218). `became-law`
- **2026-05-08** Enrolled to Governor. `executive-receipt`
- **2026-05-08** Received notice of passage on Final Reading in House (Hse. Com. No. 888). `receipt`
- **2026-05-06** Received notice of Final Reading (Sen. Com. No. 816). `receipt`
- **2026-05-06** Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0). `passage`
- **2026-05-06** Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none. `passage`
- **2026-05-01** Forty-eight (48) hours notice Wednesday, 05-06-26.
- **2026-05-01** Reported from Conference Committee (Conf Com. Rep. No. 109-26) as amended in (CD 1).
- **2026-05-01** 48 Hrs. Notice (as amended CD 1) 05-06-26.
- **2026-05-01** Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 109-26).
- **2026-04-30** The 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.
- **2026-04-30** The 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. `committee-passage-favorable`
- **2026-04-29** Conference committee meeting scheduled for 04-30-26 11:00AM; Conference Room 309.
- **2026-04-21** Received notice of Senate conferees (Sen. Com. No. 718). `receipt`
- **2026-04-21** Senate Conferees Appointed: Kim Chair; Moriwaki, Fevella.
- **2026-04-20** Received notice of appointment of House conferees (Hse. Com. No. 787). `receipt`
- **2026-04-20** House Conferees Appointed: Takenouchi Chair; Kitagawa, Gedeon.
- **2026-04-16** Received notice of disagreement (Sen. Com. No. 710). `receipt`
- **2026-04-16** Senate disagrees with House amendments. `amendment-failure`
- **2026-04-16** Received from House (Hse. Com. No. 712). `introduction, receipt`
- **2026-04-14** Passed Third Reading with none voting aye with reservations; none voting no (0) and none excused (0). Transmitted to Senate. `passage`
- **2026-04-09** Passed 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).
- **2026-04-09** Reported 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.
- **2026-04-07** The 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. `committee-passage-favorable`
- **2026-04-02** Bill scheduled to be heard by FIN on Tuesday, 04-07-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
- **2026-03-12** Referred to FIN, referral sheet 17 `referral-committee`
- **2026-03-12** Pass First Reading `reading-1`
- **2026-03-10** Received from Senate (Sen. Com. No. 313) in amended form (SD 1). `introduction, receipt`
- **2026-03-10** Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. `passage`
- **2026-03-05** 48 Hrs. Notice 3/10/2026.
- **2026-03-05** Report adopted; Passed Second Reading, as amended (SD 1). `reading-2, referral-committee`
- **2026-03-05** Reported from WAM (Stand. Com. Rep. No. 2876) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading.
- **2026-03-02** The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: Senator(s) Richards ; 0 No(es): none; and 0 Excused: none. `committee-passage-favorable`
- **2026-02-27** The committee(s) on WAM has scheduled a public hearing on 03-02-26 10:00AM; Conference Room 211 & Videoconference.
- **2026-01-30** Referred to WAM. `referral-committee`
- **2026-01-26** Passed First Reading. `reading-1`
- **2026-01-23** Introduced. `introduction`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/757e1866-a4ae-476d-92ab-cc4489e50c78`. Confidence: reported (aggregated from official Hawaii legislature records).