REPORT TITLE:
Wholesale; GET


DESCRIPTION:
Provides a general excise tax exemption for manufacturers on the
sale of their products for resale at wholesale.  (HB2182 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2182
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE GENERAL EXCISE TAX.


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

 1      SECTION 1.  Section 237-29.55, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]237-29.55[]]  Exemption for sale of tangible personal
 
 4 property for resale at wholesale.(a)  There shall be exempted
 
 5 from, and excluded from the measure of, the taxes imposed by this
 
 6 chapter all of the gross proceeds or gross income arising from
 
 7 the manufacture, production, or the sale of tangible personal
 
 8 property [imported to Hawaii from a foreign or domestic source]
 
 9 to a licensed taxpayer for subsequent resale for the purpose of
 
10 wholesale as defined under section 237-4.  Sales by a
 
11 manufacturer or producer subject to this section shall not be
 
12 subject to the tax imposed under section 237-13(1) for the
 
13 privilege of manufacturing or producing in the State.
 
14      (b)  The department[, by rule,] may provide that a seller
 
15 may take a certificate from the purchaser of [imported] tangible
 
16 personal property[, a certificate,] in a form that the department
 
17 shall prescribe, certifying that the purchaser of the [imported]
 
18 tangible personal property shall resell the [imported] tangible
 
19 personal property at wholesale as defined under section 237-4.
 
20 Any purchaser who furnishes a certificate shall be obligated to
 

 
Page 2                                                     2182
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 pay to the seller, upon demand[,] if the sale in fact is not a
 
 2 sale for the purpose of resale at wholesale, the amount of the
 
 3 additional tax which by reason thereof is imposed upon the
 
 4 seller.  The absence of a certificate, unless the sales of the
 
 5 business are exclusively a sale for the purpose of resale at
 
 6 wholesale, in itself, shall give rise to the presumption that the
 
 7 sale is not a sale for the purpose of resale at wholesale."
 
 8      SECTION 2.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 3.  This Act shall take effect on July 1, 2000.