REPORT TITLE:
General Excise Tax


DESCRIPTION:
Exempts from the general excise tax all services (including
professional services) sold or exported out of State.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           729
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO GENERAL EXCISE TAX.



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

 1      SECTION 1.  Section 237-29.5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "�237-29.5  Exemption for sales of tangible personal
 
 4 property shipped and services sold out of the State.(a)  There
 
 5 shall be exempted from, and excluded from the measure of, the
 
 6 taxes imposed by this chapter all of the value or gross proceeds
 
 7 arising from the manufacture, production, or sale of tangible
 
 8 personal property:
 
 9      (1)  Shipped by the manufacturer, producer, or seller to a
 
10           point outside the State where the property is resold or
 
11           otherwise consumed or used outside the State; or
 
12      (2)  The sale of which is exempt under section 237-24.3(2).
 
13      (b)  There shall be exempted from, and excluded from the
 
14 measure of, the taxes imposed by this chapter all of the value or
 
15 gross proceeds arising from the sale of services:
 
16      (1)  Sold or exported by the seller to a point outside the
 
17           State where the service is resold, used, or conducted
 
18           outside the State; and
 
19      (2)  Would otherwise be subject to the tax imposed by this
 

 
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                                     S.B. NO.           729
                                                        
                                                        

 
 1           chapter under section 237-13(6) and (8).
 
 2      [(b)] (c)  For the purposes of this section, the
 
 3 manufacturer, producer, or seller shall take from the purchaser,
 
 4 a certificate, in such form as the department shall prescribe,
 
 5 certifying that the tangible personal property or services
 
 6 purchased is to be resold or otherwise consumed or used outside
 
 7 the State.  Any purchaser who shall furnish such a certificate
 
 8 shall be obligated to pay to the seller, upon demand, if the
 
 9 property or services purchased is not resold or otherwise
 
10 consumed or used outside the State, the amount of the additional
 
11 tax which by reason thereof is imposed upon the seller."
 
12      SECTION 2.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 3.  This Act shall take effect on July 1, 1999.
 
15 
 
16                           INTRODUCED BY:  _______________________