REPORT TITLE:
INTELLECTUAL PROPERTY-GET TAX
EXCLUSION


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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2991
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   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:

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

 
 
 
 
 
 
 
 
 
 
 
 
 
Page 2                                                     2991
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "237-  Exclusion for intellectual property royalties.
 
 5 There shall be exempted from, and excluded from the measure of,
 
 6 the taxes imposed by this chapter all of the gross proceeds or
 
 7 income arising from the royalties derived from patents and
 
 8 copyrights.
 
 9      SECTION 3.  New statutory material is underscored.
 
10      SECTION 4.  This Act shall take effect upon its approval.
 
11 
 
12                           INTRODUCED BY:  _______________________