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HI SB394

Bill

Official Source

Status

Passed

6/12/2019

Primary Sponsor

Donovan Cruz

Click for details

Origin

Senate

2019 Regular Session

AI Summary

  • Amends Hawaii's net income tax sourcing rules under the Uniform Division of Income for Tax Purposes Act (UDITPA) to adopt market-based sourcing for intangible property and services
  • Changes sourcing for intangible property sales to where the property is used in Hawaii, replacing the previous rule based on where income-producing activity is performed
  • Changes sourcing for service sales to where the service is used or consumed in Hawaii, replacing the previous rule based on location of income-producing activity
  • Takes effect upon approval and applies to taxable years beginning after December 31, 2019
  • Aligns Hawaii's net income tax with over half of U.S. states and with Hawaii's general excise tax, which already use market-based sourcing

Legislative Description

Relating To Taxation.

Net Income Tax

Last Action

Act 096, 06/07/2019 (Gov. Msg. No. 1197).

6/12/2019

Committee Referrals

Finance3/7/2019
Ways and Means1/24/2019

Full Bill Text

No bill text available