Report Title:

General Excise Tax – exclusion for residential rent

 

Description:

Excludes proceeds from residential rent from general excise tax liability. Effective from January 1, 2003.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

259

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RElating to the exclusion of residential rent from general excise tax liability.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. One of the greatest obstacles facing Hawaii's drive toward excellence in the new millenium is our burdensome and regressive tax system. The Legislature finds that many residents of Hawaii face great difficulty affording the high cost of rent. Part of the reason for the high cost of rent in Hawaii is attributable to the general excise tax, which is passed on to the renter.

The disenfranchised – the elderly, the disabled, the sick, the poor, and our children – need shelter even more than most. Yet most live on fixed incomes, making the tax bite and final cost even more insidious.

The cost of basic human needs should not be a roadblock in our collective drive towards excellence. As a community, we cannot afford the impact of our regressive general excise tax system. The purpose of this bill is to remove residential rent from the purview of the general excise tax.

SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237- Exemption for residential rent. (a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or income arising from residential rent."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on January 1, 2003.

INTRODUCED BY:

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