Bill Text: HI HB1459 | 2017 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-01-30 - Referred to LAB, FIN, referral sheet 6 [HB1459 Detail]
Download: Hawaii-2017-HB1459-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1459 |
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TWENTY-NINTH LEGISLATURE, 2017 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-71, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (a) and (b) to read:
"(a) A tax at the rates [herein]
provided in this section shall be assessed, levied, collected, and paid
for each taxable year on the taxable income of every corporation, including a
corporation carrying on business in partnership, except that in the case of a
regulated investment company the tax is as provided by subsection (b) and
further that in the case of a real estate investment trust as defined in
section 856 of the Internal Revenue Code of 1954 the tax is as provided in
subsection (d). "Corporation" includes any professional corporation
incorporated pursuant to chapter 415A.
The tax on all taxable income shall be at the
rate of 4.4 per cent if the taxable income is not over $25,000, 5.4 per cent if
over $25,000 but not over $100,000, and on all over $100,000, 6.4 per cent[.];
provided that if the ratio between the salary of a corporation's highest-paid
employee and the average of all the corporation's employees exceeds twenty-to-one,
the tax on all taxable income shall be at the rate of per cent if the
taxable income is not over $25,000, per cent if over $25,000 but not
over $100,000, and on all over $100,000,
per cent.
(b) In the case of a regulated investment
company, there is imposed on the taxable income, computed as provided in
sections 852 and 855 of the Internal Revenue Code but with the changes and
adjustments made by this chapter (without prejudice to the generality of the
foregoing, the deduction for dividends paid is limited to [such] the
amount of dividends as is attributable to income taxable under this chapter), a
tax consisting in the sum of the following: 4.4 per cent if the taxable income
is not over $25,000, 5.4 per cent if over $25,000 but not over $100,000, and on
all over $100,000, 6.4 per cent[.]; provided that if the ratio
between the salary of a regulated investment company's highest-paid employee
and the average of all the regulated investment company's employees exceeds
twenty-to-one, the tax shall consist in the sum of the
following: per cent
if the taxable income is not over $25,000, per cent if over $25,000
but not over $100,000, and on all over $100,000,
per cent."
2. By amending subsection (d) to read:
"(d) In the case of a real estate
investment trust, there is imposed on the taxable income, computed as
provided in sections 857 and 858 of the Internal Revenue Code but with the
changes and adjustments made by this chapter (without prejudice to the
generality of the foregoing, the deduction for dividends paid is limited to [such]
the amount of dividends as is attributable to income taxable under this
chapter), a tax consisting in the sum of the following: 4.4 per cent if the
taxable income is not over $25,000, 5.4 per cent if over $25,000 but not over
$100,000, and on all over $100,000, 6.4 per cent[.]; provided that if
the ratio between the salary of a real estate investment trust's highest-paid
employee and the average of all the real estate investment trust's employees
exceeds twenty-to-one, the tax shall consist in the sum of the
following: per cent
if the taxable income is not over $25,000, per cent if over $25,000
but not over $100,000, and on all over $100,000, per
cent.
In addition to any other penalty provided by
law any real estate investment trust whose tax liability for any taxable year
is deemed to be increased pursuant to section 859(b)(2)(A) or 860(c)(1)(A)
after December 31, 1978, (relating to interest and additions to tax determined
with respect to the amount of the deduction for deficiency dividends allowed)
of the Internal Revenue Code shall pay a penalty in an amount equal to the
amount of interest for which [such] the trust is liable that is
attributable solely to [such] the increase. The penalty payable
under this subsection with respect to any determination shall not exceed
one-half of the amount of the deduction allowed by section 859(a), or 860(a)
after December 31, 1978, of the Internal Revenue Code for [such] the
taxable year."
SECTION 2. Section 235-71.5, Hawaii Revised Statutes, is amended to read as follows:
"§235-71.5 Alternative tax for
corporations. Section 1201 (with respect to alternative tax for
corporations) of the Internal Revenue Code of 1986, as amended as of December
31, 1996, shall be operative for the purposes of this chapter and shall be
applied as set forth in this section. If for any taxable year a corporation,
regulated investment company, or real estate investment trust has a net capital
gain, then, in lieu of the tax imposed by section 235-71, there is hereby
imposed a tax (if [such] the tax is less than the tax imposed
under section 235-71), which shall consist of the sum of:
(1) A tax computed on the taxable income reduced by the amount of the net capital gain, at the rates and in the manner as if this section had not been enacted, plus
(2) The sum of:
(A) 3.08 per cent of the lesser of:
(i) The net capital gain determined by
including only the gain or loss [which] that is properly taken
into account for the portion of the taxable year before April 1, 1987 (i.e.,
the amount in paragraph (1)), or
(ii) The net capital gain for the taxable year, plus
(B) 4 per cent of the excess (if any) of:
(i) The net capital gain for the taxable year, over
(ii) The amount of the net capital gain taken
into account under subparagraph (A)[.];
provided that if the ratio between the salary of the highest-paid employee of the corporation, regulated investment company, or real estate investment trust and the average of all the employees of the corporation, regulated investment company, or real estate investment trust exceeds twenty-to-one, the percentages is subparagraphs (A) and (B) shall be per cent and per cent, respectively."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2016.
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INTRODUCED BY: |
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Report Title:
Corporate Income Tax; Employee Compensation; Rates
Description:
Increases to an unspecified percentage, the corporate income tax rates for companies where the ratio between the salary of the company's highest-paid employee and the average of all the company's employees exceeds 20:1.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
