Report Title:

General Excise Tax; Exemption; Contractor

Description:

Provides an exemption from the general excise tax for resident contractors performing work on federal or state projects.

THE SENATE

S.B. NO.

989

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CONTRACTORS.

 

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- Contractor's exemption. (a) Any law to the contrary notwithstanding, there shall be exempted from the measure of the taxes imposed by this chapter, all of the gross proceeds derived by a contractor or subcontractor arising from any construction project performed pursuant to an agreement entered into with the United States or the State, and all of the gross proceeds derived from the sale of tangible personal property by a seller of such tangible personal property to such contractor or subcontractor; provided that the exemption shall apply only to tangible personal property that is to be affixed to, or to become a physical, integral part of the construction project, or that is to be entirely consumed during the performance of the contracting required by the contract or subcontract.

(b) For the purposes of this section, "contractor" has the same meaning as used in section 237-6; provided that a contractor shall also possess a valid general excise tax license and be a resident of the State as defined under section 235-1."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval and shall apply to taxable years beginning after 2002.

INTRODUCED BY:

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