The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1901-06-28
ACT ~

ACT ~
An Act to Provide Tax on incomes.
BE IL enacted by the Legislature of the
Territory OF Hawaii:
Section /. From and after the lst day
OF July. A. d. 1901 there shall be levied
assessed, collected and paid annually up
on the gains, profits and income, over
and above 81 900, derived by every person
residing in the Territory of Hawaii from
all property owned, and every business.
trade. profession. employment or vocation
carried on In the Territory, and by every
person residing without the Territory
from all property owned and every bus
mess. trade, profession, employment or
vocation carried on in the Territory, and
by every servant. or officer, of the Ter
ritory wherever residing, tax of per
cent on the amount so derived during the
year preceding
Section 2. There shall be levied, assess
ed, collected and paid annually, except as
hereinafter provided tax of per cent
on the net profit or income above actual
operating and business expenses from
all property owned, and every business,
trade, employment or vocation carried on
In the Territory of Hawaii, of all cor
porations doing business for profit in the
Territory no matter where created and
organized; provided, however, that moth
ing herein contained shall apply to cor
porations companies or associations con-
Quoted solely for charitable, religious, ed
vocational scientific purposes, including
fraternal beneficiary societies, ner to in
surance companies taxed on percent
age of the premiums under the author
ity of another Act.
Section 8. In estimating the gains,
profits and income of any person or cor
porat ton, there shall be included all in
come derived from interest upon notes.
bonds and other securities, except such
bonds of the Territory of Hawaii or OF
municipalities hereafter created by the
Territory the principal and interest of
which are by the law of their issuance
exempt from all taxation; profits realized
within the year preceding from sales OF
real estate, including leaseholds purchas-
ed within two years; dividends upon the
stock of any corporation; the amount OF
all premiums on bonds, notes of coupons;
the amount of sales of all movable prop
erty, less the amount expended in the
purchase or production of the same, and
in the case of person not including any
part thereof consumed directly by him
or his family; money and the value of
all personal property acquired by gift or
inheritance, and all other gains, profits
and income derived from any source
whatsoever.
Section A. The net profits or income of
all corporations shall include the
amounts paid or payable to, or distribu-
ted or distributable among shareholders
from any fund or account, or carried to
the account of any fund or used for con-
struction. engagements of plant, or any
other expenditure or investment paid
from the net annual profits made or ac-
quired by said corporation.
In computing the incomes, the neces-
nt,,
ing on any business, trade, profession or
occupation, or In managing any property,
shall be deducted, and also all interest
paid by such person or corporation on ex-
listing Indebtedness. And all Govern
rient taxes and license fees paid within
the year shall be deducted from the
gains, profits or income of the person
who or the corporation which has actu-
ally paid the same, whether such person
or corporation be owner. tenant or mort
gagor; also losses actually sustained
during the year incurred In trade or aris-
ing from losses by fire not covered by in
surance, or losses otherwise actually in
Cured
Provided, that no deduction shall be
made for any amount paid out for new
buildings. permanent improvements or
betterments made to increase the value
of any property or estate.
Provided further, that no deduction
shall be made for personal or family ex-
penses. the exemption of 81 900 mentioned
in section being in lieu of same.
Provided further, that where allowable
herein only one deduction of $1,000 shall
be made from the aggregate annual in
come of all the members of one family
composed Of one or both parents and one
or more minor children, or husband and
wife; that guardians shall be allowed to
make deduction in favor of each and
every ward, except where two or more
wards are comprised in one family, in
which case the aggregate deduction in
their favor shall not exceed $1,000.
Provided further that in assessing the
income of any person or corporation
there shall not be included the amount
received from any corporation as diyi-
bends upon the stock of such corpora
ton If the tax of 2 per cent has been as
sessed upon Its net profits by said cor
poration, as required by this Act, nor
any bequest or inheritance otherwise tax
ed as such.
Section g. Every corporation doing
business for profit in the Territory shall
make and render to the assessor of its
TAX division, between the LIST and 3lst
days OF July of each year, beginning
with the year 1901. full return verified
by oath or affirmation OF its duly en-
powered officer, in such form as the
'tSa9Si CT VI tue territory may prescribe,
OF all the following matters for the whole
twelve months ending June sOth last pre-
eediag the date OF such return:
First. The gross receipts OF such cor
poration from sales made at home or
abroad. and from all kinds OF business
OF any name or nature.
Second. Ihe expenses OF such corpora
ton, exclusive OF interest, annultles ana
dividends,
Third, The amount paid on account OF
Interest. annuities ana dividends statea
separately,
Fouflh Inc amount expended on per-
manent improvements
rum. The amount paid IN salaries or
compensation Of more than Ispl % each
person employed, and the nams ana
amount maid "a each