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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2872 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
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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 purpose of this Act is to temporarily:
(1) Increase the tax rate on banks and other financial corporations;
(2) Repeal the requirement that $2,000,000 of the tax revenues from banks and other financial corporations be deposited into the compliance resolution fund; and
(3) Authorize the commissioner of financial institutions to expedite the imposition of fees on banks and other financial corporations.
SECTION 2. Section 241-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The measure of the tax imposed by
this chapter is the entire net income from all sources for the preceding
calendar year, or in the case of a taxpayer operating on a fiscal year basis,
for the preceding fiscal year. The tax shall be at the rate of [seven and
ninety-two] eight and seventy-one one hundredths per cent of the
entire net income from all sources."
SECTION 3. Section 241-4.3, Hawaii Revised Statutes, is amended to read as follows:
"[[]§241-4.3[]]
Alternative tax. Section 1201 (with respect to alternative tax for corporations)
of the Internal Revenue Code 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 bank, building and loan association, development company, financial
corporation, financial services loan company, small business investment
company, mortgage loan company, financial holding company, or trust company has
a net capital gain, then, in lieu of the tax imposed by section 241-4, there is
hereby imposed a tax (if such tax is less than the tax imposed under section
241-4) 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) Four and four tenths per cent of the net capital gain for the taxable year."
SECTION 4. Section 241-7, Hawaii Revised Statutes, is amended to read as follows:
"§241-7 Disposition of funds. All
taxes collected under this chapter shall be state realizations[; provided
that, by June 30 of each fiscal year, the sum of $2,000,000 shall be deposited
with the director of finance to the credit of the compliance resolution fund as
established pursuant to section 26-9(o).], which shall be deposited into
the general fund."
SECTION 5. Amendments made by this Act shall apply to the entire net income received for the calendar year preceding January 1, 2011. In the case of a taxpayer operating on a fiscal year basis, the amendments made by this Act shall apply to the entire net income received for the fiscal year in which January 1, 2011 occurs.
SECTION 6. (a) Between July 1, 2010 and December 31, 2010, the commissioner of financial institutions may adopt new or amend existing rules to impose or increase fees authorized to be charged to banks and other financial corporations under chapter 412, Hawaii Revised Statutes, without regard to the public notice and public hearing requirements of section 91-3, Hawaii Revised Statutes, the small business impact review requirements of chapter 201M, Hawaii Revised Statutes, or the limit on fee increases under section 92-28, Hawaii Revised Statutes.
(b) After December 31, 2010, any subsequent amendments to the rules adopted or amended pursuant to subsection (a) shall be subject to all applicable provisions of chapter 91, chapter 201M, and section 92-28, Hawaii Revised Statutes.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2010, and shall be repealed on December 31, 2015; provided that sections 241-4(a), 241-4.3, and 241-7, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act.
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INTRODUCED BY: |
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Report Title:
Bank and Other Financial Corporations Tax Rate; Increase
Description:
Increases the tax rate for banks and other financial corporations. Repeals requirement that $2,000,000 of tax revenues from banks and other financial corporations be deposited into the compliance resolution fund. Authorizes the commissioner of financial institutions to expedite the imposition of fees on banks and other financial corporations. Takes effect on 07/01/10 and sunsets on 12/31/15. Applies change to entire net income received for calendar year preceding 1/1/11 or fiscal year in which 1/1/11 occurs.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.