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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2240 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
H.D. 1 |
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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 235-9, Hawaii Revised Statutes, is amended to read as follows:
"§235-9 Exemptions; generally. (a) Except as provided in sections 235-61 to 235-67 relating to withholding and collection of tax at source, and section 235-2.4 relating to "unrelated business taxable income", the following persons and organizations shall not be taxable under this chapter: banks, building and loan associations, financial services loan companies, financial corporations, small business investment companies, trust companies, mortgage loan companies, financial holding companies, subsidiaries of financial holding companies as defined in chapter 241, and development companies taxable under chapter 241; insurance companies, agricultural cooperative associations, and fish marketing associations exclusively taxable under other laws; and persons engaged in the business of motion picture and television film production as defined by the director of taxation.
(b) Except as provided in sections 235-61 to 235-67 relating to withholding and collection of tax at source, and section 235-2.4 relating to "unrelated business taxable income", a qualifying corporation shall not be taxable under this chapter; provided that the qualifying corporation is an eligible business that relocates its corporate headquarters to the State from outside of the State.
The director of taxation shall prepare forms that may be necessary to claim an exemption under this subsection. The director may also require the eligible business to furnish information to ascertain the validity of the claim for an exemption made under this subsection and may adopt rules necessary to effectuate the purposes of this subsection pursuant to chapter 91.
(c) As used in this section:
"Corporate headquarters" means the building or buildings where the principal offices of the principal executive officers of an eligible business are located.
"Eligible business" means a business that:
(1) Is engaged in either interstate or intrastate commerce;
(2) Maintains a corporate headquarters at a location outside the State;
(3) Has not previously maintained a corporate headquarters at a location in the State;
(4) Had annual worldwide revenues of at least $100,000,000 for the taxable year immediately preceding the business's application for an exemption under this section; and
(5) Commits contractually to relocating its corporate headquarters to a location in the State."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2012, and shall apply to taxable years beginning after December 31, 2011; provided that on June 30, 2017, this Act shall be repealed and section 235-9, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act.
Report Title:
Headquarters Relocation Tax Exemption
Description:
Establishes a tax exemption for certain businesses that relocate their headquarters to Hawaii. Effective July 1, 2012. (HB2240 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.