HOUSE OF REPRESENTATIVES	H.B. NO.	1073
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII

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 physician shall be exempt from taxation under this chapter as follows:

(1) A qualifying physician who practices medicine in a county with a population of over seven hundred thousand shall be eligible for the exemption for a period of five years commencing from the date the qualifying physician was initially licensed under chapter 453; and

(2) A qualifying physician who practices medicine in a county with a population of seven hundred thousand or less shall be eligible for the exemption for a period of ten years commencing from the date the qualifying physician was initially licensed under chapter 453.

The director of taxation shall prepare forms that may be necessary to claim an exemption under this subsection.  The director may also require the qualifying physician 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)  Upon the expiration of the time periods established under subsection (b)(1) and (2), as applicable, the physician shall be subject to taxation under this chapter.

(d)  As used in this section, "qualifying physician" means a physician or osteopathic physician who:

(1) Is licensed under chapter 453;

(2) Relocates to and practices medicine in the State; and

(3) Prior to relocation, had not practiced medicine in the State."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2014.

INTRODUCED BY:

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Report Title:

Income Tax; Physicians and Osteopathic Physicians; Relocation Tax Credit

Description:

Establishes a temporary income tax exemption for physicians and osteopathic physicians who relocate and practice in Hawaii.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.