The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-06-26
ACT 20.

Honolulu. June %, 1901
ACT 20
An Act to Provide a Tax on Incomes
Be 1t enacted by the Legislature of the
| Territory of Hawaii:
Section l. From and after the 1st 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. 600 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 a 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 or scientific purposes, including
| fraternal beneficiary societies, nor to in
surance companies taxed on a percent
| age of the premiums under the author
| ity of another Act.
Section g. 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 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 a 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 4. 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-
sary expenses actually incurred in carry
| 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
ment 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-
! ms from losses by fire not covered by in
suranee, or losses otherwise actually IN
CURED.
} Provided. that no deduction shall be
made for any amount paid out for new
buildings, permanent improvements or
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 1 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
Z b,1Sl
! wife; that guardians shall be allowed to
make a 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 divi-
dends upon the stock OF suc.- corpora
! ton If the tax of per cent has -een 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 s. Every corporation doing
business for profit in the Territory shall
make and render to the assessor OF its
tax division. between the 1st and 31st
days of July Of each year, beginning
with the year 1901, a full return verified
by oath or affirmation of its duly en-
powered officer, in such form as the
Treasurer of the Territory may prescribe,
of all the following matters for the whole
twelve months ending June 30th last pre-
ceding 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. The expenses of such corpora
ton, exclusive of interest, annuities and
dividends.
Third The amount paid on account OF
interest, annuities and dividends stated
separately.
Fourth. The amount expended on per-
manent improvements.
Fifth The amount paid in salaries or
compensation of more than 5000 to each
person employed, and the name and
amount paid to each.
Section g. It shall be the duty OF all
persons of lawful age having an income
of $500 or more for the preceding year