REPORT TITLE:
General Excise Tax Rates


DESCRIPTION:
Establishes a 3% rate of general excise tax for amounts received
by licensed taxpayers from other licensed taxpayers for sales of
goods not for resale and are supplies and equipment used in the
operation of the business.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.129        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO GENERAL EXCISE TAX.



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

 1      SECTION 1.  Chapter 237, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "237-    Business to business rate of tax.  (a)  Amounts
 
 5 received by a licensed taxpayer from another licensed taxpayer
 
 6 for the sale of goods that:
 
 7      (1)  Is not for resale:
 
 8      (2)  Will be used or finally consumed within the business as
 
 9           part of the operation of the business; and
 
10      (3)  Would otherwise be subject to a rate of four per cent
 
11           under section 237-13 or 237-16;
 
12 shall be taxed at the rate of three per cent.
 
13      (b)  For the purposes of this section, the seller shall take
 
14 from the purchaser, a certificate, in such form as the department
 
15 shall prescribe, certifying that the goods purchased are not to
 
16 be resold or otherwise consumed or used outside the business.
 
17 Any purchaser who shall furnish such a certificate shall be
 
18 obligated to pay to the seller, upon demand, if the goods
 
19 purchased are resold or otherwise consumed or used outside the
 

 
Page 2                                                     
                                     H.B. NO.           
                                                        
                                                        

 
 1 business, the amount of the additional tax which by reason
 
 2 thereof is imposed upon the seller.
 
 3      (c)  The director shall adopt rules pursuant to chapter 91
 
 4 necessary to administer this section."
 
 5      SECTION 2.  New statutory material is underscored.
 
 6      SECTION 3.  This Act shall take effect on July 1, 1999.
 
 7 
 
 8                           INTRODUCED BY:_________________________