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HOUSE OF REPRESENTATIVES |
H.B. NO. |
805 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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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 repeal the income tax exemption for income derived from stock options or stocks from a qualified high technology business.
The legislature finds that the State can no longer afford the cost of this tax exemption.
SECTION 2. Section 235-9.5, Hawaii Revised Statutes, is repealed.
["§235-9.5 Stock options from
qualified high technology businesses excluded from taxation. (a)
Notwithstanding any law to the contrary, all income earned and proceeds derived
from stock options or stock, including stock issued through the exercise of
stock options or warrants, from a qualified high technology business or from a
holding company of a qualified high technology business by an employee,
officer, or director of the qualified high technology business, or investor who
qualifies for the credit under section 235-110.9, that would otherwise be taxed
as ordinary income or as capital gains to those persons shall be excluded from
taxation under this chapter.
Similar provisions shall apply to options to
acquire equity interests and to equity interests themselves with regard to
entities other than corporations.
(b) For the purposes of this section:
"Holding company of a qualified high
technology business" means any business entity that possesses:
(1) At least eighty per cent of the total
voting power of the stock or other interest; and
(2) At least eighty per cent of the total
value of the stock or other interest;
in the qualified high technology business.
"Income earned and proceeds derived
from stock options or stock" includes income from:
(1) Dividends from stock or stock received
through the exercise of stock options or warrants;
(2) The receipt or the exercise of stock
options or warrants; or
(3) The sale of stock options or stock,
including stock issued through the exercise of stock options or warrants.
"Qualified high technology
business" means the same as defined in section 235-7.3."]
SECTION 3. Statutory material to be repealed is bracketed and stricken.
SECTION 4. This Act shall take effect upon its approval and apply to taxable years beginning after December 31, 2010.
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INTRODUCED BY: |
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Report Title:
Income Tax Exemption; High Technology Stock Options; Repeal
Description:
Repeals the income tax exemption for income derived from stock options or stock from a qualified high technology business.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.