Report Title:

General Excise Tax; Depyramiding

 

Description:

Amends the general excise tax law to accelerate the timetable for pyramiding relief for the sale of services by reducing the tax rate applicable to 1.5% for sales in calendar year 2002, and 0.5% for sales in calendar year 2003 and thereafter.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1417

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the general excise tax.

 

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

SECTION 1. The legislature finds that increasing government revenues provide the opportunity to reinvest in long-term economic revitalization by accelerating the phase-in of general excise tax depyramiding commenced on January 1, 2000.

SECTION 2. Section 237-13.3, Hawaii Revised Statutes, is amended to read as follows:

"§237-13.3 Application of sections 237-4(a)(8), 237-4(a)(10), 237-4(a)(13), 237-13(2)(A), 237-13(4)(A), and 237-13(6)(A). (a) Sections 237-4(a)(8), 237-4(a)(10), 237-4(a)(13), 237-13(2)(A), 237-13(4)(A), and 237-13(6)(A) to the contrary notwithstanding, instead of the tax levied under section 237-13(2)(A) on wholesale sales subject to section 237-4(a)(8)(B), under section 237-13(4)(A) on a wholesaler subject to section 237-4(a)(13), and under section 237-13(6)(A) on a wholesaler subject to section 237-4(a)(10) at one-half of one per cent, during the period January 1, 2000, to December 31, 2005, the tax shall be as follows:

(1) In calendar year 2000, 3.5 per cent;

(2) In calendar year 2001, 3.0 per cent;

(3) In calendar year 2002, [2.5] 1.5 per cent; and

(4) In calendar year 2003[, 2.0] and thereafter, the tax shall be 0.5 per cent[;

(5) In calendar year 2004, 1.5 per cent;

(6) In calendar year 2005, 1.0 per cent; and

(7) In calendar year 2006 and thereafter, the tax shall be 0.5 per cent]."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2001.

INTRODUCED BY:

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