Report Title:

INTELLECTUAL PROPERTY-GET TAX EXCLUSION

 

Description:

This Act seeks to exclude proceeds from intellectual property royalties from general excise taxation.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

460

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE EXCLUSION OF INTELLECTUAL PROPERTY ROYALTIES FROM GENERAL EXCISE TAXATION.

 

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

 

SECTION 1. The legislature finds that, despite the passage of Act 178 during the 1999 legislative session, there is still a need to encourage the creative community in Hawaii in order to support Hawaii's growth in the business sector. The legislature further finds that exempting individuals from taxes on royalties received from copyrights and patents will help to encourage this creative community, which in turn will help produce its own synergy to foster new avenues of business growth in Hawaii. The purpose of this bill is to exempt individuals in Hawaii from taxation on royalties owned by those individuals and developed by those individuals.

SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

237- Exclusion for intellectual property royalties. There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or income arising from the royalties derived from patents and copyrights.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on January 1, 2002.

 

 

INTRODUCED BY:

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