HI HB805

Repeals Section 235-9.5 of the Hawaii Revised Statutes, which currently excludes income from stock options and stock derived from qualified high technology businesses from state taxation.

Eliminates the tax exemption for employees, officers, directors, and qualifying investors who receive income or proceeds from stock options, stock, or warrants of qualified high technology businesses.

Removes the exemption for dividends, exercise of stock options or warrants, and sales of stock from qualified high technology businesses and their holding companies.

Takes effect upon approval and applies to taxable years beginning after December 31, 2010.

Cites fiscal necessity, stating the State can no longer afford the cost of this tax exemption.