The Independent. [volume] (Honolulu, H.I.) 1895-1905, 1901-06-27

An Act to Provide O Tax on In
comes.
BE it enacted by the Legislature of
the Territory Of Hawaii:
Section |, From and after the lst
dav OF July, A. D, lc01, there shall
be levied, assessed, collected and
paid en- 1ually upon the gains, pro-
tits and income, over and above
Sl,r }, derived by every person re-
siding in the Territory OF Hawaii
from all property owned, and every
business, trade, profession, employ
ment or vocation carried on in the
Territory, and by every person re-
siding without the Territory from
all property owned, and every bust
ness, trade, profession, employment
or vocation carried on in the Terri.
tory, and by every servant, or officer,
OF the Territory wherever residing,
tax OF 2 per cent on the amount
so derived during the year proceed
ing.
Section 2 There shall be levied,
assessed, collected aud paid annual
ly, except as hereinafter provided,
a tax OF two per cent on the net
profit or inc mo above actual cper
atiug aud business expenses, from
all property owned, and eve Y bnsi
ness, trade, employ or vocation
carried on in the Territory of Ha-
waii, of all corpor ,tions doing bust
ness for profit in the Territory, no
matter where created and organized;
provided, however, that nothing
herein contained shall apply to cor.
porations, companies or associations
conducted solely for charitable,
religious, educational or scientific
purposes, including iraternal beue-
fciary societies, nor to insurance
companies taxed on percentage Of
the premiums under the authority
OF another Act.
Section 3 In estimating the gains,
profits and income of any person or
corporations, there shall bs includ-
ed all income derived from interest
upon notes, bonds and other securi-
ties, except such bonds Of the Terri
tory 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
al zad within the year precedir g
trom sales of real estate, including
leasshold, purchased within two
year dividends upon the stock OF
any corporation; the amount OF all
premiums on bonds, notes of
coupons; the amount OF sales of all
movable property, less the amount
expended in the purchase or pro-
duction of the same, and in the case
Of person not including any Iaro
thereof consumed directly by him
or his family; money and the value
of all personal property acquired
by gift or inheritance, aud all ether
gains, profits aud incoT, derived
from any source Whatsoever
Section 4. The net profits or in.
coma Of all corporations shall in
clude the amounts paid or payable
to, or distributed or distrioutable
among shareholders from any fund
or account, or carried tn the ac-
count of any fund or used for con-
structiou. enlargements OF plant, or
any other expenditure or invest ment
oaid from the net annual profits
made or acquired by said corpora
, ton.
In computing the incomes, the
necessary expenses actually INCUR
cd in carrying on aoy business
trade, profession or occupation, OF
in managing any property, shall be
DE- Quoted, and also all interest paid
by such person or corporation on
existing Indebtedness. And all Gov
eminent taxes and license fees paid
within the year shall be deducted
from the game, rrodis or Income OF
the person who or the corporation