The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-05-08
A FORMER
INCOME TAX
Unconstitutional
Act Passed In
1896.
A VENTURE OF
THE REPUBLIC
Reminiscent Legislation Suggested
by Ahe Recent Passage Of
the Dickey Act.

Hawaii made an effort in 1896 to get
an income tax law and one was intro
duced and passed in the Legislature of
that year and signed by President Dole.
1t was, however, declared unconstitu-
tional by the Hawaiian Supreme Court.
BY request of people who are studying
the income tax question, the Advertiser
reprints this old Act as follows:
Law Concerning the Assessment and Col
lection of Tax on Income from the
Session Laws of 1S96)-Return to be
Made During the Month of August
and Payment to be Made on or Be-
fore November Is.
ASSESSMENT UPON INDIVIDUALS.
Section l. From and after the first day
of July, A. d. 1897 there shall be levied,
assessed. collected and paid annually up
on the gains, profits and income derived
by every person residing in the NRepub-
lie, and by every person residing with
out the Republic, from all property own
ed, and every business trade, profession,
employment or vocation carried on in the
Republic and by every servant or officer
of the Republic, wherever residing, a
tax of one per cent on the amount SO
derived provided, that while the gains,
profits or income of any such person who
resides within the Republic, or of any
servant or officer of the Republic wher-
ever residing, shall not have exceeded the
sum of Four Thousand Lo.-ars for the
preceding twelve months, only SO much
of such gains, profits or income as ex-
ceeds the sum of Two Thousand Dollars.
shall be liable to such tax, and the tax
herein provided for shall be assessed by
the Assessors and Collectors for the
time being for the several Tax Divisions
of the Republic, and collected and paid
upon the gains, profits and income for
the year ending the Both day of June
next preceding the time for levying, as
| sessing, collecting and paying the said
tax.
ASSESSMENT UPON CORPORATIONS.
Section g There shall be levied, as
sessed, collected and paid, except as
herein otherwise provided, tax of one
per cent annually on the net profits or
income above actual operating and bus
mess expenses from all property owned.
and every business, trade, employment or
vocation carried on in the Republic, of
all corporations doing business for profit
in the Republic of Hawaii, no matter
how or where created and organized;
provided, however, that nothing herein
contained shall apply to corporations.
companies or associations organized and
conducted solely for charitable, religious.'
educational or scientific purposes. in
GLIDING fraternal beneficiary societies, or
ders or associations operating upon the
lodge system and providing for the pay
ment of the sick, accident or other ben
efits to the members of such societies,
orders or associations, an dependents OF
such members nor to insurance compa-
MES taxed On a percentage of the pre-
miums under the authority of any other
Act; nor to the stock, shares, funds,
real and personal property. or securities
held by any fiduciary or trustee for char
liable, religious, educational or scientific
purposes.
Section 8. In estimating the gains.
profits and income of any person or cor
poration, there shall be included all in
bonds and other securities, except such
bonds of the Republic of Hawaii, the
principal and interest of which are by
the law of their issuance exempt from
all taxation; profits realized within the
year from sales of real estate, including
leaseholds for any term purchased with
in two years previous to the close of the
year for which income is estimated div
idetds upon the stock OF any corporation;
interest received or accrued upon all
notes, bonds, mortgages, or other forms
Of Indebtedness bearing interest, whether
paid or not, if good and collectable, less
the interest which has become due from
said person or corporation or which has
been paid by him or 1t during the year;
the amount of all premiums on bonds,
notes or coupons; the amount of sales OF
all movable property less the amount ex-
pended in the purchase or production of
nd N he n
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, pronts and income derived
from any source Whatever,
The net profits or income Of all corpor-
atoms shall include the amounts paid or
payable to, or distributed or distribut-
able among shareholders from any Iund
or account or carried to the account of
any fund or used for constructions, en-
Iargements of plant, or any other ex-
penditure or investment paid from the
net annual profits made or acquired by
said corporation.
In computing incomes, the necessary |
expenses actually incurred in carrying on
any business, trade profession or occu-
patton, or in managing any property, /
shall be deducted. and also ali interest
duC u pdiu within ZIG J CO. ny ooSA PSA-
son or corporation on existing indebted
ness. And all Government taxes and IL
cense fees paid within the year shall be |
deducted from the gains, profits or in |
come OF the person who, or the corpora |
ton which has actually paid the same, |
whether such person or corporation be |
owner, tenant or mortgagor; also, losses |
actually sustained during the year in |
CURED In trade or arising from fires, |
storms or shipwreck, and not compensat- |
ed for by insurance or otherwise, and |
debts ascertained to be worthless.
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 where allowable |
herein only one deduction of two thou |
sand dollars shall be made from the ag- |
gregate income of all the members of |
any family, composed of one or both |
parents, and one or more minor chill |
1ren, or husband wife; that guardians |
hall he oil -al To ,alr 51l