Category Archives: Use (HRS 238)

SB 1474, SD-1

General Excise (HRS 237), Use (HRS 238)

SUBJECT:  GENERAL EXCISE, USE, Increase Tax Rate, Give to Education

BILL NUMBER:  SB 1474, SD-1

INTRODUCED BY:  Senate Committees on Education and Higher Education

EXECUTIVE SUMMARY:  Increases the general excise and use taxes by 0.5% and provides that the revenue generated by the increased rate will be used for department of education (DOE) and University of Hawaii (UH) operations, including salaries and maintenance costs.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous because of the all-encompassing nature of the tax.  We also question why such a massive increase is being sought given that DOE and UH already have a gargantuan share of the State budget but are still beset with such issues as frustrated teachers, students roasting in our classrooms, and a massive maintenance backlog.  It also should be kept in mind that the bill does not ensure that increased funding will be made available for DOE or UH, as the case may be.

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SB 2086

Net Income (HRS 235), Use (HRS 238)

SUBJECT:  USE, INCOME, Require individuals to report use tax on individual return

BILL NUMBER:  SB 2086

INTRODUCED BY:  K. RHOADS, Kidani

EXECUTIVE SUMMARY:  Requires individuals who have not otherwise reported use tax to report it and pay it on their individual income tax return.  This device is used in many other states with a use tax, with varying degrees of success.  A proper cost-benefit analysis should be undertaken before adopting it here, because the administrative costs are likely to be considerable. The Committee should also consider a safe harbor provision because individuals may not be keeping the records required to establish the amount of liability.

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HB 590, HD-1

General Excise (HRS 237), Use (HRS 238)

SUBJECT:  GENERAL EXCISE, USE, Exemption for Hawaii Film Studio

BILL NUMBER:  HB 590, HD-1

INTRODUCED BY:  House Committee on Economic Development & Business

EXECUTIVE SUMMARY:  Among other things, this measure provides general excise tax and use tax exemptions for operations and improvements of the Hawaii Film Studio.  If this is passed, other agencies will be wanting similar exemptions to stretch their budget dollars a little further.

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HB 590

General Excise (HRS 237), Use (HRS 238)

SUBJECT:  GENERAL EXCISE, USE, Exemption for Hawaii Film Studio

BILL NUMBER:  HB 590

INTRODUCED BY:  NAKASHIMA, JOHANSON, KEOHOKALOLE, C. LEE, LUKE, NISHIMOTO, OHNO, ONISHI, SAN BUENAVENTURA, WOODSON, YAMASHITA, Takumi

EXECUTIVE SUMMARY:  Among other things, this measure provides general excise tax and use tax exemptions for operations and improvements of the Hawaii Film Studio.  If this is passed, other agencies will be wanting similar exemptions to stretch their budget dollars a little further.

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HB 629

General Excise (HRS 237), Net Income (HRS 235), Use (HRS 238)

SUBJECT:  GENERAL EXCISE, INCOME, USE, Exemptions/Credits for Clean Energy

BILL NUMBER:  HB 629

INTRODUCED BY:  YAMANE, CULLEN, ITO, KONG, C. LEE, SAIKI, SAY, SOUKI, Choy, Yamashita

EXECUTIVE SUMMARY:  Exempts personal income tax income and general excise tax income in an amount up to an unspecified percentage of the costs of construction and operation of projects entered into under a public-private partnership with the ERS to improve water infrastructure or water supply, or to promote clean energy. Authorizes ERS investments in such public-private partnerships.  This strategy dodges procurement laws and budgeting, increases risk to ERS assets, and may even be prohibited by ERISA.

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HB 398, HD-1

General Excise (HRS 237), Use (HRS 238)

SUBJECT:  GENERAL EXCISE, USE, Reporting Requirement for Direct Sellers

BILL NUMBER:  HB 398, HD-1

INTRODUCED BY:  House Committee on Economic Development & Business

EXECUTIVE SUMMARY:  This measure is based on a Colorado statute upheld in federal court.  It is in line with other states’ measures increasing pressure on remote sellers to collect and remit sales and use taxes owed on purchases by customers in the state.  It has the potential to aid significantly in the enforcement and collection of GET and use taxes imposed under current law.

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HB 1413

General Excise (HRS 237), Use (HRS 238)

SUBJECT:  GENERAL EXCISE, USE, Simplified Seller Use Tax Remittance Act,

BILL NUMBER:  HB 1413

INTRODUCED BY:  LUKE

EXECUTIVE SUMMARY:  Establishes a program, patterned after one in Alabama, giving remote sellers an incentive to register and pay over use taxes, which are due from their customers but have traditionally been difficult to collect.  A “stick” such as a factor presence nexus law or regulation may be needed to raise the stakes for remote sellers who otherwise might stay in the shadows.

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HB 398

General Excise (HRS 237), Use (HRS 238)

SUBJECT:  GENERAL EXCISE, USE, Reporting Requirement for Direct Sellers

BILL NUMBER:  HB 398

INTRODUCED BY:  CHOY, OSHIRO

EXECUTIVE SUMMARY:  This measure is based on a Colorado statute upheld in federal court.  It is in line with other states’ measures increasing pressure on remote sellers to collect and remit sales and use taxes owed on purchases by customers in the state.  It has the potential to aid significantly in the enforcement and collection of GET and use taxes imposed under current law.

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SB 2547, CD-1

General Excise (HRS 237), Insurance Premiums (HRS 431), Public Service Company (HRS 239), Use (HRS 238)

 

SUBJECT: GENERAL EXCISE, USE, PUBLIC SERVICE COMPANY, INSURANCE PREMIUM, Periodic Review of Exemptions, Deductions, and Credits

BILL NUMBER:  SB 2547, CD-1

INTRODUCED BY:  Conference Committee

EXECUTIVE SUMMARY:  This bill would require the State Auditor to periodically review the myriad exemptions, deductions, and other tax benefits now provided under chapters 237, 238, and 239, as well as some miscellaneous provisions.

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