Report Title:

General Excise Tax

Description:

Lowers the general excise tax rate by 1/2% per year until 1/1/11 when the general excise tax law is repealed.

THE SENATE

S.B. NO.

899

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

"237- Application of sections 237-4, 237-13, and 237-16. (a) Sections 237-4, 237-13, and 237-16 to the contrary notwithstanding, instead of the four per cent tax rate levied under sections 237-4, 237-13, and 237-16, during the period January 1, 2004, to December 31, 2010, the tax rate shall be as follows:

(1) In calendar year 2004, 3.5 per cent;

(2) In calendar year 2005, 3.0 per cent;

(3) In calendar year 2006, 2.5 per cent;

(4) In calendar year 2007, 2.0 per cent;

(5) In calendar year 2008, 1.5 per cent;

(6) In calendar year 2009, 1.0 per cent;

(7) In calendar year 2010, .5 per cent; and

(8) In calendar year 2011, 0 per cent.

(b) The department may implement the tax rate changes in subsection (a) by prescribing tax forms and instructions that require tax reporting and payment by deduction, allocation, or any other method to determine tax liability with due regard to the tax rate changes."

SECTION 2. Chapter 237, Hawaii Revised Statutes, is repealed.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval; provided that section 2 shall take effect on January 1, 2011.

INTRODUCED BY:

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