1207
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE CIGARETTE TAX.



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

 1      SECTION 1.  Section 245-3, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  The taxes, however, are subject to the following
 
 4 limitations:
 
 5      (1)  The measure of the taxes shall not include any
 
 6           cigarettes or tobacco products exempted, and so long as
 
 7           the same are exempted, from the imposition of taxes by
 
 8           the Constitution or laws of the United States; [and]
 
 9      (2)  The measure of taxes shall exempt and exclude all sales
 
10           of cigarettes and tobacco products to the United States
 
11           (including any agency or instrumentality thereof that
 
12           is wholly owned or otherwise so constituted as to be
 
13           immune from the levy of a tax under this chapter), sold
 
14           by any person licensed under this chapter; and
 
15     [(2)] (3)  The taxes shall be paid only once in respect of
 
16           the same cigarettes or tobacco product. This limitation
 
17           shall not prohibit the imposition of the excise tax on
 
18           receipts from sales of tobacco products under
 
19           subsection (a)(2); provided that the amount subject to
 

 
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 1           the tax on each sale shall not include amounts
 
 2           previously taxed under this chapter."
 
 3      SECTION 2.  This Act does not affect rights and duties that
 
 4 matured, penalties that were incurred, and proceedings that were
 
 5 begun, before its effective date.
 
 6      SECTION 3.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 4.  This Act, upon its approval, shall take effect
 
 9 retroactively and shall apply to taxable periods beginning after
 
10 June 30, 1993.
 
11 
 
12                           INTRODUCED BY:  _______________________
 

 
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