Report Title:
General Excise Tax; Commercial Construction
Description:
Exempts contractors from general excise tax for commercial construction or improvement in the State.
THE SENATE |
S.B. NO. |
688 |
TWENTY-SECOND LEGISLATURE, 2003 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the 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 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, but not including pest control or fumigation as a pest control operator.
"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and shall apply to gross income or gross proceeds received after December 31, 2002; provided that this Act shall be repealed on December 31, 2004.
INTRODUCED BY: |
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