HOUSE OF REPRESENTATIVES

H.B. NO.

66

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the general excise tax exemption for certain scientific contracts with the united states.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Section 238-3, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:

"(j) The tax imposed by this chapter shall not apply to any use of property, services, or contracting exempted by [section 237-26 or] section 237-29."

SECTION 2. Section 237-26, Hawaii Revised Statutes, is repealed.

["237-26 Exemption of certain scientific contracts with the United States. (a) Any provision of law to the contrary notwithstanding, there shall be exempted from the measure of the taxes imposed by chapter 237, all of the gross proceeds derived by a contractor or subcontractor arising from the performance of any scientific work as defined in subsection (b), under a contract or subcontract entered into with the United States (including any agency or instrumentality thereof but not including national banks), 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 the exemption herein shall apply only to such tangible personal property which is to be affixed to, or to become a physical, integral part of the scientific facility, or which is to be entirely consumed during the performance of the service required by the contract or subcontract.

(b) For purposes of this section, "scientific work" is work involving primarily the research and development for, or the design, manufacture, instrumentation, installation, maintenance, or operation of aerospace, agricultural, astronomical, biomedical, electronic, geophysical, oceanographic, test range, or other scientific facilities. Maintenance or operation, for purposes of this section, shall include housekeeping functions in providing certain nonscientific logistic and support services."]

SECTION 3. Statutory material to be repealed is bracketed and stricken.

SECTION 4. This Act shall take effect on July 1, 2015.

 

INTRODUCED BY:

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Report Title:

General Excise Tax; Exemption; Scientific Contracts; GET; General Excise Tax Exemption for Certain Scientific Contracts With the United States

 

Description:

Repeals the general excise tax exemption for certain scientific contracts with the United States.

 

 

 

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