Bill Text: HI HB1913 | 2016 | Regular Session | Introduced
Bill Title: General Excise Tax Exemption; Small Businesses
Spectrum: Slight Partisan Bill (Democrat 8-5)
Status: (Introduced - Dead) 2016-02-11 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Har, Oshiro excused (2). [HB1913 Detail]
Download: Hawaii-2016-HB1913-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1913 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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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. The legislature finds that Hawaii is often rated last, or near the bottom, in surveys measuring the friendliness of a state's business climate.
The legislature believes that exempting small businesses with annual gross incomes of $50,000 or less would help to promote entrepreneurship in the State and stimulate the local economy. According the department of taxation, such an exemption is projected to result in a loss of $60,000,000 in tax revenues. However, this loss would be offset by the increased economic activity produced by the exemption and possibly result in a revenue gain.
The purpose of this Act is to establish a general excise tax exemption for small businesses with an annual gross income of no more than $50,000.
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Exemption; small businesses. (a) This chapter shall not apply to a qualified small business; provided that the gross income of the qualified small business does not exceed $50,000 for the taxable year the exemption is claimed.
(b) A qualified small business claiming an exemption under this section shall not pass on the taxes imposed by this chapter to its customers for the taxable year the exemption is claimed.
(c) For the purposes of this section, "qualified small business" means a corporation, partnership, sole proprietorship, or other legal entity that:
(1) Is domiciled in this State;
(2) Is formed to make a profit;
(3) Is independently owned and operated;
(4) Employs fewer than one hundred full-time employees; and
(5) Has been issued a certificate of tax clearance from the department of taxation verifying that the small business has filed all required returns and paid all required taxes, penalties, and interest for the taxable year the exemption is claimed.
(d) The director of taxation shall adopt rules in accordance with chapter 91 to implement this section."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2017.
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INTRODUCED BY: |
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Report Title:
General Excise Tax Exemption; Small Businesses
Description:
Exempts qualified small businesses from the general excise tax.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
