Report Title:

General Excise Tax; Commercial Construction

 

Description:

Exempts contractors from general excise tax for commercial construction or improvement in the State. (SD1)

THE SENATE

S.B. NO.

2390

TWENTY-FIRST LEGISLATURE, 2002

S.D. 1

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-   Exemption for contracting services for commercial construction performed in this State. (a) There shall be exempted from, and excluded from the measure of, taxes imposed by this chapter, all of the value or gross income derived from contracting by a contractor for commercial construction or improvement in this State.

(b) For the purposes of this subsection (a), the person rendering the contracting or services shall take from the customer, a certificate or an equivalent, in a form the department prescribes, certifying that the contracting or service purchased is to be conducted in this State for new commercial construction or commercial improvement construction to an existing commercial edifice. Any customer who furnishes this certificate or an equivalent shall be obligated to pay the State the amount of the taxes imposed by this chapter if the construction does not meet the requirements of this section.

(c) For purposes of this section:

"Contractor" shall have the same meaning as in section 237-6.

"Commercial construction or improvement" means any construction that does not include residential construction (whether single family, condominium, townhouse, or mixed use development), state or county capital improvement projects, or federal construction projects."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval, and shall be repealed on            2003.