The Hawaiian gazette., 1901-05-10
FORMER INCOME TAX.


duced and passed In the Legislature OF
that year aud signed by President Dole.
IL 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 Cfrom the
Session Laws of 1880 Return TO be
Made During the Month of August
and Payment to be Made ON or Be
fore November 10.
ASSESSMENT UPON INDIVIDUALS.
Section l. From ana after the FIRST day
of July, a. d. 1891 there shall be levied,
assessed, collected and paid annually up
on the gains, profits and income derived
by every person residing in the Repub-
lie, and by every person residing Win
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,
tax of one per cent on the amount 50
derived. provided. that wnhe the gains,
profits or income of any such person VINO
resides within the Republic, or Oh any
servant or officer OF the republic wher-
ever residing. shall not have exceeded the
sum of Four Thousand LIARS 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 Tor the
time being for the several Tax DIVISIONS
of the Republic, and collected ana paid
upon the gains, profits and income Tor
the year ending the Both day OF June
A.. ~ f.,,- low ftNNF q O.
sessing, collecting and paying the salu
tax.
ASSESSMENT UPON CORPORATIONS.
Section 2. There shall be levied, as
sessed, collected and paid, except as
herein otherwise provideu, 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 OF
vocation carried on in the Republic, OF
all corporations doing business for proht
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 pen-
efits to the members of such socletles,
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
table religious, educational or scientinc
purposes.
METHOD OF ESTIMATING INCOME.
Section 8. In estimating the gains
profits and income of any person or cor
poration, there shall be included all In
come derived from interest upon notes,
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 WIN
in two years previous to the close or 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, II good and collectable, less
the interest which has become due from |
said person or corporation, or which mas
been paid by him or it during the year.
the amount of all premiums on bonds.
notes or coupons; the amount or sales OF
all movable property less the amount ex-
pended 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, 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 distribute
able among shareholders from any lund
or account or carried to the account OF
any fund or used for constructions, en-
Engagements 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 all interest
due or paid within the yea. by such per-
son or corporation on existing indebted
ness. And all Government taxes and IL
rense fees paid within the year shall be
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
,urred in trade or arising from fires,
storms or shipwreck, and not compensat-
vi for by insurance or otherwise, and
debts ascertained to be worthless
Provided, that no deduction she'd be
made for any amount paid out for new
permanent improvements. or
made to increase the value
,f 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
iren, or husband wife; that guardians
shall be allowed TO make a deduction In
favor OF each and every ward. except
mat IN case where two or more wards
are comprised IN one family. and have
oint property interest, the aggregate de-
iuetion Ia their favor shall not exceed