Report Title:

GET; Business to Business

 

Description:

Provides a .5% GET rate for goods that are sold by a GET licensee to another GET licensee that are not resold, consumed or used outside of the purchasing licensee's business.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1068

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO GENERAL EXCISE TAX.

 

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

SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237- Business to business rate of tax. (a) Amounts received by a taxpayer licensed under this chapter from another taxpayer licensed under this chapter for the sale of goods that:

(1) Is not for resale:

(2) Will be used or finally consumed within the business as part of the operation of the business; and

(3) Would otherwise be taxed at a rate of four per cent under section 237-13 or 237-16;

shall be taxed at the rate of .5 per cent.

(b) For the purposes of this section, the seller shall take from the purchaser, a certificate, in such form as the department shall prescribe, certifying that the goods purchased are not to be resold or otherwise consumed or used outside the purchaser's business.

(c) Any purchaser who furnishes a certificate to a seller for goods and resells or otherwise consumes or uses the goods outside of the purchaser's business, shall pay to the seller any additional tax imposed by this chapter upon the seller for such resale, consumption, or use.

(d) The director shall adopt rules pursuant to chapter 91 necessary to administer this section."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2001.

INTRODUCED BY:

_____________________________