Report Title:

General Excise Tax; Medical Services and Equipment

Description:

Excludes medical services and equipment from the general excise tax.

HOUSE OF REPRESENTATIVES

H.B. NO.

1474

TWENTY-SECOND LEGISLATURE, 2003

 

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. The legislature finds that many residents of Hawaii face the high cost of medical services and equipment -- including the elderly, disabled, sick, poor, and children. Although the issue of medical services costs is complicated and multi-dimensional, one reason for the high cost of medical services and equipment is attributable to the general excise tax.

The general excise tax generated from medical services and equipment is substantial. During austere economic times, the State is inclined not to disrupt this steady source of State revenue. But the consequences of that inaction is a policy that exploits the sick and disabled and reinforces the public's perception of an uncaring state government.

The purpose of this Act is to correct a misguided state tax policy by exempting medical services and equipment from the general excise tax.

SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237- Exemption for health care services and equipment. (a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or income arising from the provision of health care services or equipment.

(b) For purposes of this section, "health care services" means services involved in the diagnosis, cure, mitigation, treatment, or prevention of disease or the promotion of wellness of body when provided by one of the following types of facilities or people:

(1) Nonprofit or for-profit hospitals;

(2) Surgical outpatient facilities;

(3) Dialysis facilities;

(4) Infirmaries;

(5) Skilled nursing facilities;

(6) Intermediate care facilities;

(7) Adult residential care homes;

(8) Adult foster homes;

(9) Adult day care facilities;

(10) Assisted living facilities;

(11) Pharmacies;

(12) Sanitariums;

(13) Surface and air ambulances;

(14) Persons holding a valid license under chapters 442, 447, 448, 451A, 452, 453, 455, 457, 457A, 457G, 458, 459, 460, 461, 461J, 463E, 465, 466J, and 468E.

(c) As used in this section, "medical equipment" means any device, instrument, appliance, apparatus, or contrivance, electronic, mechanical, or otherwise, that is intended for the use in the diagnosis, cure, mitigation, treatment, or prevention of disease or the promotion of wellness of body when provided by one of the entities or persons listed in subsection (b)."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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