REPORT TITLE:
Taxation


DESCRIPTION:
Provides for limited liability income tax classification
conformity in Hawaii Employment Security Law, Hawaii Workers'
Compensation Law, and Temporary Disability Insurance Law.


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            108         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
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:

 1      SECTION 1.  Chapter 383, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "383-       Limited liability companies.  For the purposes
 
 5 of this chapter, a domestic or foreign limited liability company
 
 6 organized or registered to do business in the state under chapter
 
 7 428 shall be classified as a corporation or partnership, or
 
 8 disregarded as an entity separate from its owner, in the same
 
 9 manner as it elects to be classified for income tax purposes
 
10 under chapter 235."
 
11      SECTION 2.  Chapter 386, Hawaii Revised Statutes, is amended
 
12 by adding a new section to be appropriately designated and to
 
13 read as follows:
 
14      "386-       Limited liability companies.  For the purposes
 
15 of this chapter, a domestic or foreign limited liability company
 
16 organized or registered to do business in the state under chapter
 
17 428 shall be classified as a corporation or partnership, or
 
18 disregarded as an entity separate from its owner, in the same
 
19 manner as it elects to be classified for income tax purposes
 
20 under chapter 235."
 

 
Page 2                                         108         
                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 3.  Chapter 392, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "392-       Limited liability companies.  For the purposes
 
 5 of this chapter, a domestic or foreign limited liability company
 
 6 organized or registered to do business in the state under chapter
 
 7 428 shall be classified as a corporation or partnership, or
 
 8 disregarded as an entity separate from its owner, in the same
 
 9 manner as it elects to be classified for income tax purposes
 
10 under chapter 235."
 
11      SECTION 4.  New statutory material is underscored.
 
12      SECTION 5.  This Act shall take effect on July 1, 1999.
 
13 
 
14                           INTRODUCED BY:  _______________________