REPORT TITLE:
University of Hawaii


DESCRIPTION:
Includes sales of tangible personal property to the University of
Hawaii as sales at wholesale subject to the general excise tax
rate of .5%.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.833        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE UNIVERSITY OF HAWAII.
 


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

 1      SECTION 1.  The legislature finds that the present general
 
 2 excise tax structure has placed local businesses at a competitive
 
 3 disadvantage with respect to tangible personal property resold by
 
 4 university projects and systems, as defined in section 306-1,
 
 5 Hawaii Revised Statutes.
 
 6      Specifically, when a university project purchases tangible
 
 7 personal property for resale, general excise tax at the retail
 
 8 rate of four per cent, not the wholesaler rate of one-half per
 
 9 cent, is imposed on the vendor of that tangible personal property
 
10 because the University of Hawaii is not a licensed seller for
 
11 purposes of the general excise tax.  If a university project were
 
12 to import that same property from an out-of-state supplier,
 
13 however, the use tax at the retail rate is not imposed because
 
14 the university is a state instrumentality.
 
15      To correct the inequity in the general excise tax law, this
 
16 Act includes sales of tangible personal property to university
 
17 projects as a sale at wholesale subject to the one-half of one
 
18 per cent rate. 
 
19      SECTION 2.  Section 237-4, Hawaii Revised Statutes, is
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1 amended to read as follows:
 
 2      "237-4 "Wholesaler", "jobber", defined."Wholesaler" or
 
 3 "jobber" applies only to a person making sales at wholesale.
 
 4 Only the following are sales at wholesale:
 
 5      (1)  Sales to a licensed retail merchant, jobber, or other
 
 6           licensed seller for purposes of resale;
 
 7      (2)  Sales to a licensed manufacturer of material or
 
 8           commodities which are to be incorporated by the
 
 9           manufacturer into a finished or saleable product
 
10           (including the container or package in which the
 
11           product is contained) during the course of its
 
12           preservation, manufacture, or processing, including
 
13           preparation for market, and which will remain in such
 
14           finished or saleable product in such form as to be
 
15           perceptible to the senses, which finished or saleable
 
16           product is to be sold and not otherwise used by the
 
17           manufacturer;
 
18      (3)  Sales to a licensed producer or cooperative association
 
19           of materials or commodities which are to be
 
20           incorporated by the producer or by the cooperative
 
21           association into a finished or saleable product which
 
22           is to be sold and not otherwise used by the producer or
 
23           cooperative association, including specifically
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1           materials or commodities expended as essential to the
 
 2           planting, growth, nurturing, and production of
 
 3           commodities which are sold by the producer or by the
 
 4           cooperative association;
 
 5      (4)  Sales to a licensed contractor, of material or
 
 6           commodities which are to be incorporated by the
 
 7           contractor into the finished work or project required
 
 8           by the contract and which will remain in such finished
 
 9           work or project in such form as to be perceptible to
 
10           the senses;
 
11      (5)  Sales to a licensed producer, or to a cooperative
 
12           association described in section 237-23(a)(7) for sale
 
13           to such producer, or to a licensed person operating a
 
14           feed lot, of poultry or animal feed, hatching eggs,
 
15           semen, replacement stock, breeding services for the
 
16           purpose of raising or producing animal or poultry
 
17           products for disposition as described in section 237-5
 
18           or to be incorporated in a manufactured product as
 
19           described in paragraph (2) or for the purpose of
 
20           breeding, hatching, milking, or egg laying other than
 
21           for the customer's own consumption of the meat,
 
22           poultry, eggs, or milk so produced; provided that in
 
23           the case of a feed lot operator, only the segregated
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1           cost of the feed furnished by the feed lot operator as
 
 2           part of the feed lot operator's service to a licensed
 
 3           producer of poultry or animals to be butchered or to a
 
 4           cooperative association described in section
 
 5           237-23(a)(7) of such licensed producers shall be deemed
 
 6           to be a sale at wholesale; and provided further that
 
 7           any amount derived from the furnishing of feed lot
 
 8           services, other than the segregated cost of feed, shall
 
 9           be deemed taxable at the service business rate.  This
 
10           paragraph shall not apply to the sale of feed for
 
11           poultry or animals to be used for hauling,
 
12           transportation, or sports purposes;
 
13      (6)  Sales to a licensed producer, or to a cooperative
 
14           association described in section 237-23(a)(7) for sale
 
15           to the producer, of seed for producing agricultural
 
16           products, or bait for catching fish (including the
 
17           catching of bait for catching fish), which agricultural
 
18           products or fish are to be disposed of as described in
 
19           section 237-5 or to be incorporated in a manufactured
 
20           product as described in paragraph (2);
 
21      (7)  Sales to a licensed producer, or to a cooperative
 
22           association described in section 237-23(a)(7) for sale
 
23           to such producer; of polypropylene shade cloth; of
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1           polyfilm; of polyethylene film; of cartons and such
 
 2           other containers, wrappers, and sacks, and binders to
 
 3           be used for packaging eggs, vegetables, fruits, and
 
 4           other agricultural products; of seedlings and cuttings
 
 5           for producing nursery plants; or of chick containers;
 
 6           which cartons and such other containers, wrappers, and
 
 7           sacks, binders, seedlings, cuttings, and containers are
 
 8           to be used as described in section 237-5, or to be
 
 9           incorporated in a manufactured product as described in
 
10           paragraph (2);
 
11      (8)  Sales of tangible personal property to a licensed
 
12           person engaged in the service business; provided that
 
13           (A) the property is not consumed or incidental to the
 
14           performance of the services; (B) there is a resale of
 
15           the article at the retail rate of four per cent; and
 
16           (C) the resale of the article is separately charged or
 
17           billed by the person rendering the services; 
 
18      (9)  Sales to a licensed leasing company of capital goods
 
19           which are thereafter leased as a service to others.
 
20           Capital goods means goods which have a depreciable life
 
21           and which are purchased by the leasing company for
 
22           lease to its customers[.]; and
 
23     (10)  Sales of tangible personal property to a university
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1           project, as defined in section 306-1, for resale, but
 
 2           not including sales through a vending machine or
 
 3           similar device.
 
 4      If the use tax law is finally held by a court of competent
 
 5 jurisdiction to be unconstitutional or invalid insofar as it
 
 6 purports to tax the use or consumption of tangible personal
 
 7 property imported into the State in interstate or foreign
 
 8 commerce or both, wholesalers and jobbers shall be taxed
 
 9 thereafter under this chapter in accordance with the following
 
10 definition (which shall supersede the preceding paragraph
 
11 otherwise defining "wholesaler" or "jobber"):  "Wholesaler" or
 
12 "jobber" means a person, or a definitely organized division
 
13 thereof, definitely organized to render and rendering a general
 
14 distribution service which buys and maintains at the person's
 
15 place of business a stock or lines of merchandise which the
 
16 person distributes; and which, through salespersons, advertising,
 
17 or sales promotion devices, sells to licensed retailers, to
 
18 institutional or licensed commercial or industrial users, in
 
19 wholesale quantities and at wholesale rates.  A corporation
 
20 deemed not to be carrying on a trade or business in this State
 
21 under section 235-6 shall nevertheless be deemed to be a
 
22 wholesaler and shall be subject to the tax imposed by this
 
23 chapter."
 
24      SECTION 3.  Section 237-13, Hawaii Revised Statutes, is
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1 amended to read as follows:
 
 2      "237-13  Imposition of tax.  There is hereby levied and
 
 3 shall be assessed and collected annually privilege taxes against
 
 4 persons on account of their business and other activities in the
 
 5 State measured by the application of rates against values of
 
 6 products, gross proceeds of sales, or gross income, whichever is
 
 7 specified, as follows:
 
 8      (1)  Tax on manufacturers.
 
 9           (A)  Upon every person engaging or continuing within
 
10                the State in the business of manufacturing,
 
11                including compounding, canning, preserving,
 
12                packing, printing, publishing, milling,
 
13                processing, refining, or preparing for sale,
 
14                profit, or commercial use, either directly or
 
15                through the activity of others, in whole or in
 
16                part, any article or articles, substance or
 
17                substances, commodity or commodities, the amount
 
18                of the tax to be equal to the value of the
 
19                articles, substances, or commodities,
 
20                manufactured, compounded, canned, preserved,
 
21                packed, printed, milled, processed, refined, or
 
22                prepared, for sale, as shown by the gross proceeds
 
23                derived from the sale thereof by the manufacturer
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                or person compounding, preparing, or printing
 
 2                them, multiplied by one-half of one per cent.
 
 3           (B)  The measure of the tax on manufacturers is the
 
 4                value of the entire product for sale, regardless
 
 5                of the place of sale or the fact that deliveries
 
 6                may be made to points outside the State.
 
 7           (C)  If any person liable for the tax on manufacturers
 
 8                ships or transports the person's product, or any
 
 9                part thereof, out of the State, whether in a
 
10                finished or unfinished condition, or sells the
 
11                same for delivery outside of the State (for
 
12                example, consigned to a mainland purchaser via
 
13                common carrier f.o.b. Honolulu), the value of the
 
14                products in the condition or form in which they
 
15                exist immediately before entering interstate or
 
16                foreign commerce, determined as hereinafter
 
17                provided, shall be the basis for the assessment of
 
18                the tax imposed by this paragraph.  This tax shall
 
19                be due and payable as of the date of entry of the
 
20                products into interstate or foreign commerce,
 
21                whether the products are then sold or not.  The
 
22                department of taxation shall determine the basis
 
23                for assessment, as provided by this paragraph, as
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                follows:
 
 2                (i)  If the products at the time of their entry
 
 3                     into interstate or foreign commerce already
 
 4                     have been sold, the gross proceeds of sale,
 
 5                     less the transportation expenses, if any,
 
 6                     incurred in realizing the gross proceeds for
 
 7                     transportation from the time of entry of the
 
 8                     products into interstate or foreign commerce,
 
 9                     including insurance and storage in transit,
 
10                     shall be the measure of the value of the
 
11                     products.
 
12               (ii)  If the products have not been sold at the
 
13                     time of their entry into interstate or
 
14                     foreign commerce, and in cases governed by
 
15                     clause (i) in which the products are sold
 
16                     under circumstances such that the gross
 
17                     proceeds of sale are not indicative of the
 
18                     true value of the products, the value of the
 
19                     products constituting the basis for
 
20                     assessment shall correspond as nearly as
 
21                     possible to the gross proceeds of sales for
 
22                     delivery outside the State, adjusted as
 
23                     provided in clause (i), or if sufficient data
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                     are not available, sales in the State, of
 
 2                     similar products of like quality and
 
 3                     character and in similar quantities, made by
 
 4                     the taxpayer (unless not indicative of the
 
 5                     true value) or by others.  Sales outside the
 
 6                     State, adjusted as provided in clause (i),
 
 7                     may be considered when they constitute the
 
 8                     best available data.  The department shall
 
 9                     prescribe uniform and equitable rules for
 
10                     ascertaining the values.
 
11              (iii)  At the election of the taxpayer and with the
 
12                     approval of the department, the taxpayer may
 
13                     make the taxpayer's returns under clause (i)
 
14                     even though the products have not been sold
 
15                     at the time of their entry into interstate or
 
16                     foreign commerce.
 
17               (iv)  In all cases in which products leave the
 
18                     State in an unfinished condition, the basis
 
19                     for assessment shall be adjusted so as to
 
20                     deduct the portion of the value as is
 
21                     attributable to the finishing of the goods
 
22                     outside the State.
 
23      (2)  Tax on business of selling tangible personal property;
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1           producing.
 
 2           (A)  Upon every person engaging or continuing in the
 
 3                business of selling any tangible personal property
 
 4                whatsoever (not including, however, bonds or other
 
 5                evidence of indebtedness, or stocks), there is
 
 6                likewise hereby levied, and shall be assessed and
 
 7                collected, a tax equivalent to four per cent of
 
 8                the gross proceeds of sales of the business;
 
 9                provided that insofar as certain retailing is
 
10                taxed by section 237-16, the tax shall be that
 
11                levied by section 237-16, and in the case of a
 
12                wholesaler, or sales at wholesale as defined in
 
13                section 237-4, the tax shall be equal to one-half
 
14                of one per cent of the gross proceeds of sales of
 
15                the business.  Upon every person engaging or
 
16                continuing within this State in the business of a
 
17                producer, the tax shall be equal to one-half of
 
18                one per cent of the gross proceeds of sales of the
 
19                business, or the value of the products, for sale,
 
20                if sold for delivery outside the State or shipped
 
21                or transported out of the State, and the value of
 
22                the products shall be determined in the same
 
23                manner as the value of manufactured products
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                covered in the cases under paragraph (1)(C).
 
 2           (B)  Gross proceeds of sales of tangible property in
 
 3                interstate and foreign commerce shall constitute a
 
 4                part of the measure of the tax imposed on persons
 
 5                in the business of selling tangible personal
 
 6                property, to the extent, under the conditions, and
 
 7                in accordance with the provisions of the
 
 8                Constitution of the United States and the Acts of
 
 9                the Congress of the United States which may be now
 
10                in force or may be hereafter adopted, and whenever
 
11                there occurs in the State an activity to which,
 
12                under the Constitution and Acts of Congress, there
 
13                may be attributed gross proceeds of sales, the
 
14                gross proceeds shall be so attributed.
 
15           (C)  No manufacturer or producer, engaged in such
 
16                business in the State and selling the
 
17                manufacturer's or producer's products for delivery
 
18                outside of the State (for example, consigned to a
 
19                mainland purchaser via common carrier f.o.b.
 
20                Honolulu), shall be required to pay the tax
 
21                imposed in this chapter for the privilege of so
 
22                selling the products, and the value or gross
 
23                proceeds of sales of the products shall be
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                included only in determining the measure of the
 
 2                tax imposed upon the manufacturer or producer.
 
 3           (D)  When a manufacturer or producer, engaged in such
 
 4                business in the State, also is engaged in selling
 
 5                the manufacturer's or producer's products in the
 
 6                State at wholesale, retail, or in any other
 
 7                manner, the tax for the privilege of engaging in
 
 8                the business of selling the products in the State
 
 9                shall apply to the manufacturer or producer as
 
10                well as the tax for the privilege of manufacturing
 
11                or producing in the State, and the manufacturer or
 
12                producer shall make the returns of the gross
 
13                proceeds of the wholesale, retail, or other sales
 
14                required for the privilege of selling in the
 
15                State, as well as making the returns of the value
 
16                or gross proceeds of sales of the products
 
17                required for the privilege of manufacturing or
 
18                producing in the State.  The manufacturer or
 
19                producer shall pay the tax imposed in this chapter
 
20                for the privilege of selling its products in the
 
21                State, and the value or gross proceeds of sales of
 
22                the products, thus subjected to tax, may be
 
23                deducted insofar as duplicated as to the same
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                products by the measure of the tax upon the
 
 2                manufacturer or producer for the privilege of
 
 3                manufacturing or producing in the State; except
 
 4                that no producer of agricultural products who
 
 5                sells the products to a purchaser who will process
 
 6                the products outside the State shall be required
 
 7                to pay the tax imposed in this chapter for the
 
 8                privilege of producing or selling those products.
 
 9           (E)  A taxpayer selling to a federal cost-plus
 
10                contractor may make the election provided for by
 
11                paragraph (3)(C), and in that case the tax shall
 
12                be computed pursuant to the election,
 
13                notwithstanding this paragraph or paragraph (1) to
 
14                the contrary.
 
15           (F)  The department, by rule, may provide that a seller
 
16                may take from the purchaser of tangible personal
 
17                property a certificate, in a form as the
 
18                department shall prescribe, certifying that the
 
19                sale is a sale at wholesale.  If the certificate
 
20                is so provided for by rule of the department:
 
21                (i)  Any purchaser who furnishes a certificate
 
22                     shall be obligated to pay to the seller, upon
 
23                     demand, if the sale in fact is not at
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                     wholesale, the amount of the additional tax
 
 2                     which by reason thereof is imposed upon the
 
 3                     seller; and
 
 4               (ii)  The absence of a certificate, unless the
 
 5                     sales of the business are exclusively at
 
 6                     wholesale, in itself shall give rise to the
 
 7                     presumption that the sale is not at
 
 8                     wholesale.
 
 9      (3)  Tax upon contractors.
 
10           (A)  Upon every person engaging or continuing within
 
11                the State in the business of contracting, the tax
 
12                shall be equal to four per cent of the gross
 
13                income of the business; provided that insofar as
 
14                the business of contracting is taxed by section
 
15                237-16, which relates to certain retailing, the
 
16                tax shall be that levied by section 237-16.
 
17           (B)  In computing the tax levied under this paragraph
 
18                or section 237-16, there shall be deducted from
 
19                the gross income of the taxpayer so much thereof
 
20                as has been included in the measure of the tax
 
21                levied under subparagraph (A) or section 237-16,
 
22                on:
 
23                (i)  Another taxpayer who is a contractor, as
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                     defined in section 237-6;
 
 2               (ii)  A specialty contractor, duly licensed by the
 
 3                     department of commerce and consumer affairs
 
 4                     pursuant to section 444-9, in respect of the
 
 5                     specialty contractor's business; or
 
 6              (iii)  A specialty contractor who is not licensed by
 
 7                     the department of commerce and consumer
 
 8                     affairs pursuant to section 444-9, but who
 
 9                     performs contracting activities on federal
 
10                     military installations and nowhere else in
 
11                     this State;
 
12                but any person claiming a deduction under this
 
13                paragraph shall be required to show in the
 
14                person's return the name and general excise number
 
15                of the person paying the tax on the amount
 
16                deducted by the person.
 
17           (C)  In computing the tax levied under this paragraph
 
18                against any federal cost-plus contractor, there
 
19                shall be excluded from the gross income of the
 
20                contractor so much thereof as fulfills the
 
21                following requirements:
 
22                (i)  The gross income exempted shall constitute
 
23                     reimbursement of costs incurred for
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                     materials, plant, or equipment purchased from
 
 2                     a taxpayer licensed under this chapter, not
 
 3                     exceeding the gross proceeds of sale of the
 
 4                     taxpayer on account of the transaction; and
 
 5               (ii)  The taxpayer making the sale shall have
 
 6                     certified to the department that the taxpayer
 
 7                     is taxable with respect to the gross proceeds
 
 8                     of the sale, and that the taxpayer elects to
 
 9                     have the tax on gross income computed the
 
10                     same as upon a sale to the state government.
 
11           (D)  A person who, as a business or as a part of a
 
12                business in which the person is engaged, erects,
 
13                constructs, or improves any building or structure,
 
14                of any kind or description, or makes, constructs,
 
15                or improves any road, street, sidewalk, sewer, or
 
16                water system, or other improvements on land held
 
17                by the person (whether held as a leasehold, fee
 
18                simple, or otherwise), upon the sale or other
 
19                disposition of the land or improvements, even if
 
20                the work was not done pursuant to a contract,
 
21                shall be liable to the same tax as if engaged in
 
22                the business of contracting, unless the person
 
23                shows that at the time the person was engaged in
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                making the improvements it was, and for the period
 
 2                of at least one year after completion of the
 
 3                building, structure, or other improvements, it
 
 4                continued to be the person's purpose to hold and
 
 5                not sell or otherwise dispose of the land or
 
 6                improvements.  The tax in respect of the
 
 7                improvements shall be measured by the amount of
 
 8                the proceeds of the sale or other disposition that
 
 9                is attributable to the erection, construction, or
 
10                improvement of such building or structure, or the
 
11                making, constructing, or improving of the road,
 
12                street, sidewalk, sewer, or water system, or other
 
13                improvements.  The measure of tax in respect of
 
14                the improvements shall not exceed the amount which
 
15                would have been taxable had the work been
 
16                performed by another, subject as in other cases to
 
17                the deductions allowed by subparagraph (B).  Upon
 
18                the election of the taxpayer, this paragraph may
 
19                be applied notwithstanding the improvements were
 
20                not made by the taxpayer, or were not made as a
 
21                business or as a part of a business, or were made
 
22                with the intention of holding the same.  However,
 
23                this paragraph shall not apply in respect of any
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1                proceeds that constitute or are in the nature of
 
 2                rent; all such gross income shall be taxable under
 
 3                paragraph (10); provided that insofar as the
 
 4                business of renting or leasing real property under
 
 5                a lease is taxed under section 237-16.5, the tax
 
 6                shall be levied by section 237-16.5.
 
 7      (4)  Tax upon theaters, amusements, radio broadcasting
 
 8           stations, etc.  Upon every person engaging or
 
 9           continuing within the State in the business of
 
10           operating a theater, opera house, moving picture show,
 
11           vaudeville, amusement park, dance hall, skating rink,
 
12           radio broadcasting station, or any other place at which
 
13           amusements are offered to the public, the tax shall be
 
14           equal to four per cent of the gross income of the
 
15           business.
 
16      (5)  Tax upon sales representatives, etc.  Upon every person
 
17           classified as a representative or purchasing agent
 
18           under section 237-1, engaging or continuing within the
 
19           State in the business of performing services for
 
20           another, other than as an employee, there is likewise
 
21           hereby levied and shall be assessed and collected a tax
 
22           equal to four per cent of the commissions and other
 
23           compensation attributable to the services so rendered
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1           by the person.
 
 2      (6)  Tax on service business.  Upon every person engaging or
 
 3           continuing within the State in any service business or
 
 4           calling not otherwise specifically taxed under this
 
 5           chapter, there is likewise hereby levied and shall be
 
 6           assessed and collected a tax equal to four per cent of
 
 7           the gross income of the business; provided that where
 
 8           any person engaging or continuing within the State in
 
 9           any service business or calling renders those services
 
10           upon the order of or at the request of another taxpayer
 
11           who is engaged in the service business and who, in
 
12           fact, acts as or acts in the nature of an intermediary
 
13           between the person rendering those services and the
 
14           ultimate recipient of the benefits of those services,
 
15           so much of the gross income as is received by the
 
16           person rendering the services shall be subjected to the
 
17           tax at the rate of one-half of one per cent and all of
 
18           the gross income received by the intermediary from the
 
19           principal shall be subjected to a tax at the rate of
 
20           four per cent; and provided that where any person is
 
21           engaged in the business of selling interstate or
 
22           foreign common carrier telecommunication services
 
23           within and without the State, the tax shall be imposed
 

 
Page 21                                                    
                                     H.B. NO.833        
                                                        
                                                        

 
 1           on that portion of gross income received by a person
 
 2           from service which is originated or terminated in this
 
 3           State and is charged to a telephone number, customer,
 
 4           or account in this State notwithstanding any other
 
 5           state law (except for the exemption under section
 
 6           237-23(a)(1)) to the contrary.  If, under the
 
 7           Constitution and laws of the United States, the entire
 
 8           gross income as determined under this paragraph of a
 
 9           business selling interstate or foreign common carrier
 
10           telecommunication services cannot be included in the
 
11           measure of the tax, the gross income shall be
 
12           apportioned as provided in section 237-21; provided
 
13           that the apportionment factor and formula shall be the
 
14           same for all persons providing those services in the
 
15           State.
 
16      (7)  Tax on insurance solicitors and agents.  Upon every
 
17           person engaged as a licensed solicitor, general agent,
 
18           or subagent pursuant to chapter 431, there is hereby
 
19           levied and shall be assessed and collected a tax equal
 
20           to .15 per cent of the commissions due to that
 
21           activity.
 
22      (8)  Professions.  Upon every person engaging or continuing
 
23           within the State in the practice of a profession,
 

 
Page 22                                                    
                                     H.B. NO.833        
                                                        
                                                        

 
 1           including those expounding the religious doctrines of
 
 2           any church, there is likewise hereby levied and shall
 
 3           be assessed and collected a tax equal to four per cent
 
 4           of the gross income on the practice or exposition.
 
 5      (9)  Tax on receipts of sugar benefit payments.  Upon the
 
 6           amounts received from the United States government by
 
 7           any producer of sugar (or the producer's legal
 
 8           representative or heirs), as defined under and by
 
 9           virtue of the Sugar Act of 1948, as amended, or other
 
10           Acts of the Congress of the United States relating
 
11           thereto, there is hereby levied a tax of one-half of
 
12           one per cent of the gross amount received, provided
 
13           that the tax levied hereunder on any amount so received
 
14           and actually disbursed to another by a producer in the
 
15           form of a benefit payment shall be paid by the person
 
16           or persons to whom the amount is actually disbursed,
 
17           and the producer actually making a benefit payment to
 
18           another shall be entitled to claim on the producer's
 
19           return a deduction from the gross amount taxable
 
20           hereunder in the sum of the amount so disbursed.  The
 
21           amounts taxed under this paragraph shall not be taxable
 
22           under any other paragraph, subsection, or section of
 
23           this chapter.
 

 
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                                     H.B. NO.833        
                                                        
                                                        

 
 1     (10)  Tax on other business.  Upon every person engaging or
 
 2           continuing within the State in any business, trade,
 
 3           activity, occupation, or calling not included in the
 
 4           preceding paragraphs or any other provisions of this
 
 5           chapter, there is likewise hereby levied and shall be
 
 6           assessed and collected, a tax equal to four per cent of
 
 7           the gross income thereof.  In addition, the rate
 
 8           prescribed by this paragraph shall apply to a business
 
 9           taxable under one or more of the preceding paragraphs
 
10           or other provisions of this chapter, as to any gross
 
11           income thereof not taxed thereunder as gross income or
 
12           gross proceeds of sales or by taxing an equivalent
 
13           value of products, unless specifically exempted."
 
14      SECTION 4.  Statutory material to be repealed is bracketed.
 
15 New statutory material is underscored.
 
16      SECTION 5.  This Act shall take effect on July 1, 1999.
 
17 
 
18                              INTRODUCED BY:______________________