Report Title:

Income taxes; entertainment

Description:

Excludes, from gross income, adjusted gross income, and taxable income, amounts up to $20,000 received from live performances; provides a tax credit of ten per cent of the increase in performers' salaries, payroll taxes, and benefits over the amount reported in the employer's 2001 tax return incurred in hiring Hawaii residents for live performances. (HB808 HD1)

 

 

HOUSE OF REPRESENTATIVES

H.B. NO.

808

TWENTY-FIRST LEGISLATURE, 2002

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TAXATION.

 

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

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"235- Income derived from live performances excluded from gross income, adjusted gross income, and taxable income. (a) In addition to the exclusions in section 235-7, there shall be excluded from gross income, adjusted gross income, and taxable income, amounts up to $20,000 received by a performer from live performances conducted in the State of Hawaii.

(b) For purpose of this section, "live performance" means a live musical and dramatic performance, including poetry readings, speeches, and lectures.

235- Income tax credit; employers of live performers. (a) For an employer of a live performer who is an employee as defined in section 235-1, there shall be a tax credit of ten per cent of the increase in the performer's salary, payroll taxes, and benefits over the amount reported in the employer's 2001 tax return incurred in hiring Hawaii residents for live performances. The tax credit shall continue to be applicable on an annual basis; provided that the performer's salary, payroll taxes, and benefits remain above the levels reported in the employer's 2001 tax return."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2002.