REPORT TITLE:
Public Serv. Co. Tax Law


DESCRIPTION:
Allows a deduction from gross income of a motor carrier the
amounts included in the measure of taxes on the motor carrier's
subcontractor for purposes of public service company taxes.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1205
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TAXATION. 


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

 1      SECTION 1.  Section 239-6, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "�239-6 Airlines, certain carriers[.]; deduction allowed.
 
 4 (a)  There shall be levied and assessed upon each airline a tax
 
 5 of four per cent of its gross income each year from the airline
 
 6 business; provided that if an airline adopts a rate schedule for
 
 7 students in grade twelve or below travelling in school groups
 
 8 providing such students at reasonable hours a rate less than one-
 
 9 half of the regular adult fare, the tax shall be three per cent
 
10 of its gross income each year from the airline business.
 
11      (b)  There shall be levied and assessed upon each motor
 
12 carrier, each common carrier by water, and upon each contract
 
13 carrier other than a motor carrier, a tax of four per cent of its
 
14 gross income each year from the motor carrier or contract carrier
 
15 business.
 
16      (c)  The tax imposed by this section is a means of taxing
 
17 the personal property of the airline or other carrier, tangible
 
18 and intangible, including going concern value, and is in lieu of
 
19 the tax imposed by chapter 237 but is not in lieu of any other
 

 
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                                     S.B. NO.           1205
                                                        
                                                        

 
 1 tax.
 
 2      (d)  In computing the tax levied under this section on a
 
 3 motor carrier there shall be deducted from the gross income of
 
 4 the motor carrier so much thereof as has been included in the
 
 5 measure of tax levied under subsection (a) on a motor carrier
 
 6 subcontractor of the motor carrier.  Any motor carrier claiming a
 
 7 deduction under this subsection shall be required to show in the
 
 8 motor carrier's return the name and general excise or other tax
 
 9 identification number of the motor carrier subcontractor paying
 
10 the tax on the amount deducted by the motor carrier."
 
11      SECTION 2.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 3.  This Act shall take effect on July 1, 1999, and
 
14 shall apply to gross income received after June 30, 1999.
 
15 
 
16                           INTRODUCED BY:  _______________________