REPORT TITLE:
Wholesale; GET


DESCRIPTION:
Exempts local manufacturers from wholesale GET.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2182 
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE GENERAL EXCISE TAX.


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

 1      SECTION 1.  Section 237-29.55, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§237-29.55[]]  Exemption for sale of tangible personal
 
 4 property for resale at wholesale.(a)  There shall be exempted
 
 5 from, and excluded from the measure of, the taxes imposed by this
 
 6 chapter all of the gross proceeds or gross income arising from
 
 7 the sale of tangible personal property [imported]:
 
 8      (1)  Imported to Hawaii [from a foreign or domestic source]
 
 9           to a licensed taxpayer; or
 
10      (2)  Manufactured in Hawaii and sold by the manufacturer,
 
11 for subsequent resale for the purpose of wholesale as defined
 
12 under section 237-4.
 
13      (b)  The department[, by rule,] may provide that a seller
 
14 may take a certificate from the purchaser of imported or
 
15 manufactured tangible personal property[, a certificate,] under
 
16 subsection (a).  The certificate shall be in a form that the
 
17 department shall prescribe, certifying that the purchaser of the
 
18 imported or manufactured tangible personal property shall resell
 
19 the imported or manufactured tangible personal property at
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 wholesale as defined under section 237-4.  Any purchaser who
 
 2 furnishes a certificate shall be obligated to pay to the seller,
 
 3 upon demand[,] if the sale in fact is not a sale for the purpose
 
 4 of resale at wholesale, the amount of the additional tax which by
 
 5 reason thereof is imposed upon the seller.  The absence of a
 
 6 certificate, unless the sales of the business are exclusively a
 
 7 sale for the purpose of resale at wholesale, in itself, shall
 
 8 give rise to the presumption that the sale is not a sale for the
 
 9 purpose of resale at wholesale."
 
10      SECTION 2.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 3.  This Act shall take effect on July 1, 2000.
 
13 
 
14                           INTRODUCED BY:_________________________