Report Title:
General Excise Tax; Increase; Exemption
Description:
Increases the general excise tax to 7-1/2% and provides exemptions from the increase for the poor.
THE SENATE |
S.B. NO. |
1622 |
TWENTY-SECOND LEGISLATURE, 2003 |
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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:
SECTION 1. The purpose of this Act is to generate new revenues to supplement the state budget and to fund education, health, and human services programs. The new revenues will assist and rescue vital budgetary items that have suffered from serious underfunding that has developed over the years due to a serious long-term economic slowdown.
SECTION 2. Notwithstanding any other law to the contrary, effective July 1, 2003, all taxpayers subject to the general excise tax under chapter 237 who pay a four per cent tax rate, shall pay a new general excise tax rate of seven and one-half per cent.
SECTION 3. The director of taxation shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to provide general excise tax exemptions to offset the three and one-half percentage point general excise tax increase under section 1. The director shall establish a graduated exemption schedule that fairly and accurately provides all or a portion of the three and one-half per cent exemption based on a taxpayer's adjusted gross income with low-income taxpayers receiving the full exemption.
SECTION 4. The Hawaii Revised Statutes is amended to conform to the purpose of this Act.
SECTION 5. This Act shall take effect on July 1, 2003.
INTRODUCED BY: |
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