REPORT TITLE:
GET; Federal Contracts


DESCRIPTION:
Exempts from the general excise tax amounts received from federal
contractors by contractors or subcontractors provided 100% of the
stockholders, owners, managers, and employees are residents.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1556
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.  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-     Exemption of federal construction contracts.  (a)
 
 5 Any provision of the law to the contrary notwithstanding, there
 
 6 shall be exempted from, and excluded from the measure of the
 
 7 taxes imposed by this chapter, all of the gross proceeds arising
 
 8 from federal construction contracts and received by resident
 
 9 contractors and subcontractors licensed under chapter 444 and
 
10 doing business in the State.
 
11      (b)  For the purposes of this section, a resident contractor
 
12 or subcontractor is doing business in the State if one hundred
 
13 per cent of its stockholders, owners, managers, and employees:
 
14      (1)  Reside in the State at least two hundred days of the
 
15           year; and
 
16      (2)  Filed a Hawaii state resident income tax in the
 
17           previous last taxable year."
 
18      SECTION 2.  New statutory material is underscored.
 

 
Page 2                                                     
                                     S.B. NO.           1556
                                                        
                                                        

 
 1      SECTION 3.  This Act shall take effect on July 1, 1999.
 
 2 
 
 3                           INTRODUCED BY: ________________________