HOUSE OF REPRESENTATIVES

H.B. NO.

1916

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to REPEAL OF the CORPORATE INCOME TAX.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1. The legislature finds that the state corporate income tax structure burdens the growth, development, and expansion of industry. Hawaii ranks thirty-first among the states for business tax climate according to the Tax Foundation, and last or nearly last among the states for business according to CNBC and ALEC.

     According to the department of business, economic development and tourism's State of Hawaii Data Book 2014, the number of Hawaii corporations on record continues to fall, from 32,508 in 2011 to 30,564 in 2014. 

     The council on revenues reported in September 2013 that the corporate income tax contributes an estimated $80,000,000 annually to the general fund. The impact of repealing the corporate income tax will be offset by the creation of new jobs, increased manufacturing and increased consumer spending. Local businesses pay taxes on nearly all business related transactions including purchases, sales, payroll, and real estate taxes, therefore relief from corporate tax liability will be significant.  Relief will pass down to consumers, lowering the costs of goods, services and ultimately the cost of living.

     The purpose of this act is to repeal the corporate income tax.

     SECTION 2.  Chapter 235, part IV, Hawaii Revised Statutes, is repealed.

     SECTION 3.  Chapter 235, part VII, Hawaii Revised Statutes, is repealed.

SECTION 4.  Statutory material to be repealed is bracketed and stricken.

     SECTION 5.  This Act shall take effect on July 1, 2018.

 

 

INTRODUCED BY:

_____________________________

 

 

 

 

Report Title:

Corporate Income Tax

 

 

Description:

A bill to encourage economic growth by repealing the corporate income tax.

 

 

 

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