Report Title:

Unfair Trade Practice; Beverage Containers; GET

Description:

Requires retailers to show the beverage product price and the deposit beverage container deposit amount separately so that the consumer can determine that the general excise tax is imposed only upon the beverage product and not the deposit on sales receipt. Makes a violation an unfair trade practice.

THE SENATE

S.B. NO.

862

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the deposit beverage container program.

 

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

SECTION 1. The legislature finds that, due to the imposition of the deposit beverage container deposit of five cents per deposit beverage pursuant to the deposit beverage container program, consumers do not have the means to determine whether the five cents being collected is being subject to the general excise tax. Although section 237-24.75, Hawaii Revised Statutes, clearly and unequivocally states that the general excise tax "shall not apply to amounts received as a beverage container deposit collected under chapter 342G, part VIII", certain sellers of deposit beverages have apparently been including the beverage deposit in the price of the beverage for purposes of calculating the general excise tax.

A seller can claim that the beverage deposit, per se, is not included in the price at the point of sale and that no general excise tax is collected on the beverage deposit itself, but instead claim that the price of the beverage, at the point of sale, is actually higher by the precise amount of the beverage deposit, and thus general excise tax can be collected on it. The crux of the problem is that the consumer cannot determine this. The purpose of this Act is to clarify that it is an unfair trade practice not to disclose to the consumer, in the case of deposit beverages, the true product price that is being charged at the point of sale, segregated from the amount being collected as a beverage deposit.

SECTION 2. Chapter 342G, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§342G-    Unfair or deceptive trade practice; segregation of product price from deposit beverage container deposit amounts in advertising and sales receipt. Every retail seller of a deposit beverage shall clearly segregate the price of a deposit beverage from the amount of the deposit beverage container deposit imposed on that deposit beverage on:

(1) All advertising or labeling of the deposit beverage that is presented to a consumer; and

(2) The sales receipt given to the consumer,

such that the consumer is able to determine that the general excise tax is imposed on only the price of the deposit beverage and not on the deposit beverage container deposit pursuant to section 237-24.75. A violation of this section is an unfair or deceptive trade practice under section 480-2."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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