Report Title:

Tax Holiday; GET

Description:

Provides a one-day tax holiday from the general excise tax.

THE SENATE

S.B. NO.

1504

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO GENERAL EXCISE TAX HOLIDAY.

 

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

SECTION 1. The purpose of this Act is to assist consumers with the high cost of living in Hawaii by providing a one-day tax holiday from the general excise tax.

SECTION 2. (a) Notwithstanding any law to the contrary, taxes imposed under chapter 237, Hawaii Revised Statutes, shall not be assessed or due on the sale of any goods that are sold on the state tax holiday; provided that the tax holiday:

(1) Shall not extend for more than one day;

(2) Is held on a day to be determined by the director of taxation;

(3) Occurs before December 31, 2005; and

(4) Is advertised to provide reasonable notice to the general public.

(b) The exemption shall apply to retail sales only and not to sales on items that will be resold in any form or manner.

The exemption shall not apply to:

(1) The rental of goods and services;

(2) Taxable services performed on retail items;

(3) Rebates, layaway sales, rain checks, or exchanges when the exchanges occur before of after the tax holiday; and

(4) Mail, telephone, e-mail, or internet orders.

(c) Articles that are normally sold as a unit shall continue to be sold in that manner and shall not be priced separately and sold as individual items to obtain the exemption.

(d) The total price of items advertised as "buy one, get one free," or "buy one, get one for a reduced price," shall not be averaged for both items to qualify for the exemption.

(e) The retailer shall not be required to obtain any special license, permit, or other documentation on sales of eligible items during the tax holiday; provided that the retailer's records shall clearly identify the type of item sold and the sales price of the item.

SECTION 2. The director of taxation shall report to the regular legislative session of 2006 on the costs of the tax holiday.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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