HI HB911

Exempts companies that provide potable water and hold federal tax-exempt status under section 501(c)(12) of the Internal Revenue Code from Hawaii state income tax under HRS Section 235-2.3.

Exempts potable water companies with section 501(c)(12) federal tax-exempt status from Hawaii's general excise tax under HRS Section 237-23.

Requires potable water companies to register with the Department of Taxation and comply with existing exemption registration procedures, including a $20 registration fee.

Applies to taxable years beginning after December 31, 2010.