Informing the Legislature that on June 8, 2026, the Governor signed the following bill into law: SB2881 SD1 HD1 CD1 (ACT 118).

This bill, signed into law by Governor Josh Green on June 8, 2026, allows taxpayers in Hawaii to voluntarily request state income tax withholding from distributions reported on IRS Form 1099-R, such as those from retirement accounts. The key provision amends state statutes to enable entities making these distributions to deduct and remit withheld taxes once a taxpayer submits a written election, with the withheld amount then credited against the recipient's annual tax return. This change aims to improve tax collection efficiency and reduce the risk of taxpayers owing large sums at the end of the year. The new rules will apply to taxable years beginning after December 31, 2026.