REPORT TITLE:
GET; Export of Services


DESCRIPTION:
Exempts from the general excise tax all services exported out of
the State.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           56
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT
RELATING TO GENERAL EXCISE TAXES.



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[:] or sale of services:
 
 9      (1)  Shipped by the manufacturer, producer, or seller to a
 
10           point outside the State where the property or service
 
11           is resold or otherwise consumed or used outside the
 
12           State; or
 
13      (2)  The sale of which is exempt under section 237-24.3(2).
 
14      (b)  For the purposes of this section, the manufacturer,
 
15 producer, or seller shall take from the purchaser, a certificate,
 
16 in such form as the department shall prescribe, certifying that
 
17 the tangible personal property or service purchased is to be
 
18 resold or otherwise consumed or used outside the State.  Any
 
19 purchaser who shall furnish such a certificate shall be obligated
 

 
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                                     S.B. NO.           56
                                                        
                                                        

 
 1 to pay to the seller, upon demand, if the property purchased is
 
 2 not resold or otherwise consumed or used outside the State, the
 
 3 amount of the additional tax which by reason thereof is imposed
 
 4 upon the seller."
 
 5      SECTION 2.  Section 237-21, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "�237-21  Apportionment.  If any person, other than persons
 
 8 liable to the tax on manufacturers as provided by section
 
 9 237-13(1), is engaged in business both within and without the
 
10 State or in selling goods or services for delivery outside the
 
11 State, and if under the Constitution or laws of the United States
 
12 or section 237-29.5 or 237-29.6 the entire gross income of such
 
13 person cannot be included in the measure of this tax, there shall
 
14 be apportioned to the State and included in the measure of the
 
15 tax that portion of the gross income which is derived from
 
16 activities within the State, to the extent that the apportionment
 
17 is required by the Constitution or laws of the United States or
 
18 section 237-29.5 or 237-29.6.  In the case of a tax upon the
 
19 production of property in the State the apportionment shall be
 
20 determined as in the case of the tax on manufacturers.  In other
 
21 cases, if and to the extent that the apportionment cannot be
 
22 accurately made by separate accounting methods, there shall be
 

 
 
 
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                                     S.B. NO.           56
                                                        
                                                        

 
 1 apportioned to the State and included in the measure of this tax
 
 2 that proportion of the total gross income, so requiring
 
 3 apportionment, which the cost of doing business within the State,
 
 4 applicable to the gross income, bears to the cost of doing
 
 5 business both within and without the State, applicable to the
 
 6 gross income."
 
 7      SECTION 3.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 4.  This Act shall take effect on July 1, 1999.
 
10 
 
11                              INTRODUCED BY:______________________