REPORT TITLE:
General Excise Tax Exempt.


DESCRIPTION:
Exempts from the general excise tax amounts from sales of oil to
public utilities.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1240        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO GENERAL EXCISE TAX EXEMPTIONS. 


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

 1      SECTION 1.  Section 237-24.3, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "237-24.3  Additional amounts not taxable.  In addition to
 
 4 the amounts not taxable under section 237-24, this chapter shall
 
 5 not apply to:
 
 6      (1)  Amounts received from the loading, transportation, and
 
 7           unloading of agricultural commodities shipped for a
 
 8           producer or produce dealer on one island of this State
 
 9           to a person, firm, or organization on another island of
 
10           this State.  The terms "agricultural commodity",
 
11           "producer", and "produce dealer" shall be defined in
 
12           the same manner as they are defined in section 147-1;
 
13           provided that agricultural commodities need not have
 
14           been produced in the State;
 
15      (2)  Amounts received from sales of:
 
16           (A)  Intoxicating liquor as the term "liquor" is
 
17                defined in chapter 244D;
 
18           (B)  Cigarettes and tobacco products as defined in
 
19                chapter 245; and
 

 
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 1           (C)  Agricultural, meat, or fish products grown,
 
 2                raised, or caught in Hawaii, to any person or
 
 3                common carrier in interstate or foreign commerce,
 
 4                or both, whether ocean-going or air, for
 
 5                consumption out-of-state on the shipper's vessels
 
 6                or airplanes;
 
 7      (3)  Amounts received by the manager or board of directors
 
 8           of:
 
 9           (A)  An association of apartment owners of a
 
10                condominium property regime established in
 
11                accordance with chapter 514A; or
 
12           (B)  A nonprofit homeowners or community association
 
13                incorporated in accordance with chapter 415B or
 
14                any predecessor thereto and existing pursuant to
 
15                covenants running with the land,
 
16           in reimbursement of sums paid for common expenses;
 
17      (4)  Amounts received or accrued from:
 
18           (A)  The loading or unloading of cargo from ships,
 
19                barges, vessels, or aircraft, whether or not the
 
20                ships, barges, vessels, or aircraft travel between
 
21                the State and other states or countries or between
 
22                the islands of the State;
 
23           (B)  Tugboat services including pilotage fees performed
 

 
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 1                within the State, and the towage of ships, barges,
 
 2                or vessels in and out of state harbors, or from
 
 3                one pier to another; and
 
 4           (C)  The transportation of pilots or governmental
 
 5                officials to ships, barges, or vessels offshore;
 
 6                rigging gear; checking freight and similar
 
 7                services; standby charges; and use of moorings and
 
 8                running mooring lines;
 
 9      (5)  Amounts received by an employee benefit plan by way of
 
10           contributions, dividends, interest, and other income;
 
11           and amounts received by a nonprofit organization or
 
12           office, as payments for costs and expenses incurred for
 
13           the administration of an employee benefit plan;
 
14           provided that this exemption shall not apply to any
 
15           gross rental income or gross rental proceeds received
 
16           after June 30, 1994, as income from investments in real
 
17           property in this State; and provided further that gross
 
18           rental income or gross rental proceeds from investments
 
19           in real property received by an employee benefit plan
 
20           after June 30, 1994, under written contracts executed
 
21           prior to July 1, 1994, shall not be taxed until the
 
22           contracts are renegotiated, renewed, or extended, or
 
23           until after December 31, 1998, whichever is earlier.
 

 
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 1           For the purposes of this paragraph, "employee benefit
 
 2           plan" means any plan as defined in section 1002(3) of
 
 3           title 29 of the United States Code, as amended;
 
 4      (6)  Amounts received for purchases made with United States
 
 5           Department of Agriculture food coupons under the
 
 6           federal food stamp program, and amounts received for
 
 7           purchases made with United States Department of
 
 8           Agriculture food vouchers under the Special
 
 9           Supplemental Foods Program for Women, Infants and
 
10           Children;
 
11      (7)  Amounts received by a hospital, infirmary, medical
 
12           clinic, health care facility, pharmacy, or a
 
13           practitioner licensed to administer the drug to an
 
14           individual for selling prescription drugs or prosthetic
 
15           devices to an individual; provided that this paragraph
 
16           shall not apply to any amounts received for services
 
17           provided in selling prescription drugs or prosthetic
 
18           devices.  As used in this paragraph:
 
19           (A)  "Prescription drugs" are those drugs defined under
 
20                section [[]328-1[]] and dispensed by filling or
 
21                refilling a written or oral prescription by a
 
22                practitioner licensed under law to administer the
 
23                drug and sold by a licensed pharmacist under
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1                section 328-16 or practitioners licensed to
 
 2                administer drugs; and
 
 3           (B)  "Prosthetic device" means any artificial device or
 
 4                appliance, instrument, apparatus, or contrivance,
 
 5                including their components, parts, accessories,
 
 6                and replacements thereof, used to replace a
 
 7                missing or surgically removed part of the human
 
 8                body, which is prescribed by a licensed
 
 9                practitioner of medicine, osteopathy, or podiatry
 
10                and which is sold by the practitioner or which is
 
11                dispensed and sold by a dealer of prosthetic
 
12                devices; provided that "prosthetic device" shall
 
13                not mean any auditory, ophthalmic, dental, or
 
14                ocular device or appliance, instrument, apparatus,
 
15                or contrivance;
 
16      (8)  Taxes on transient accommodations imposed by chapter
 
17           237D and passed on and collected by operators holding
 
18           certificates of registration under that chapter;
 
19      (9)  Amounts received as dues by an unincorporated merchants
 
20           association from its membership for advertising media,
 
21           promotional, and advertising costs for the promotion of
 
22           the association for the benefit of its members as a
 
23           whole and not for the benefit of an individual member
 

 
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 1           or group of members less than the entire membership;
 
 2           [and]
 
 3     (10)  Amounts received by a labor organization for real
 
 4           property leased to:
 
 5           (A)  A labor organization; or
 
 6           (B)  A trust fund established by a labor organization
 
 7                for the benefit of its members, families, and
 
 8                dependents for medical or hospital care, pensions
 
 9                on retirement or death of employees,
 
10                apprenticeship and training, and other membership
 
11                service programs.
 
12           As used in this paragraph, "labor organization" means a
 
13           labor organization exempt from federal income tax under
 
14           section 501(c)(5) of the Internal Revenue Code, as
 
15           amended[.]; and
 
16     (11)  Amounts received by licensed taxpayers under this
 
17           chapter from sales of oil to public utilities serving
 
18           the general public by providing electrical energy."
 
19      SECTION 2.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 
21      SECTION 3.  This Act shall take effect on July 1, 1999.
 
22 
 
23                              INTRODUCED BY:______________________
 

 
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