REPORT TITLE:
Tax; Pre-Pd Ph Calling Svc


DESCRIPTION:
Clarifies that GET is imposed on the sale of prepaid phone
calling service and authorization numbers at the point of sale.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1970
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PREPAID TELEPHONE CALLING SERVICE.



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

 1      SECTION 1.  Chapter 237, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "237-     Sales of telecommunications services through
 
 5 prepaid telephone calling service.  (a)  For the purposes of this
 
 6 section, "prepaid telephone calling service" means the right to
 
 7 exclusively purchase telecommunication services, paid for in
 
 8 advance, that enables the origination of calls using an access
 
 9 number or authorization code, whether manually or electronically
 
10 dialed.
 
11      (b)  If the sale or recharge of a prepaid telephone calling
 
12 service does not take place at the vendor's place of business, it
 
13 shall be conclusively determined to take place at the customer's
 
14 shipping address; or if there is no item shipped, then it shall
 
15 be the customer's billing address.
 
16      (c)  When a person licensed under this chapter sells prepaid
 
17 telephone calling services to a licensed retail merchant, jobber,
 
18 or other licensed seller for purposes of resale, the person shall
 
19 be taxed as a wholesaler selling tangible personal property to a
 

 
Page 2                                                     1970
                                     H.B. NO.           
                                                        
                                                        

 
 1 licensed retailer.  All other sales shall be retail sales taxed
 
 2 at the rate of four per cent." 
 
 3      SECTION 2.  New statutory material is underscored.
 
 4      SECTION 3.  This Act shall take effect upon its approval.
 
 5 
 
 6                           INTRODUCED BY:  _______________________