SB 396, SD-1

SUBJECT:  GENERAL EXCISE, Apply Tax to Marketplace Facilitators

BILL NUMBER:  SB 396, SD-1

INTRODUCED BY:  Senate Committee on Ways & Means

EXECUTIVE SUMMARY:  Establishes marketplace facilitators as the sellers of tangible personal property, intangible property, or services. Requires other persons who provide a forum for listing of items for sale and the taking or processing of orders to report information about purchasers to the Department of Taxation.

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SB 394, SD-1

SUBJECT:  INCOME, Adopt Single Sales Factor Apportionment

BILL NUMBER:  SB 394, SD-1

INTRODUCED BY:  Senate Committee on Ways & Means

SYNOPSIS:  Amends section 235-29, HRS, to provide that all business income shall be apportioned to the state by multiplying the income by the sales factor.  Also changes the way the sales factor is calculated for purposes of multistate tax apportionment.  The change makes the sales factor more consistent with the sourcing rules for general excise tax, but it makes application of the law less uniform among the states.

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SB 397, SD-2

SUBJECT:  ADMINISTRATION, Requires Additional Tax Clearances for Contractors

BILL NUMBER:  SB 397, SD-2

INTRODUCED BY:  Senate Committee on Ways & Means

EXECUTIVE SUMMARY:  Requires contractors and subcontractors to submit tax clearances as a condition of obtaining building permits for private developments exceeding a certain value. Requires contractors and subcontractors to submit additional tax clearances before final inspection of private developments exceeding a certain value.  Contractors already need tax clearances to obtain and renew their licenses, and to bid or receive final payment on state or county government contracts.  It is questionable whether these additional clearances are justified given the massive delays in the permitting process that already exist.

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SB 1360, SD-1

SUBJECT:  INCOME, Withholding Requirement for Partnerships, Estates, and Trusts

BILL NUMBER:  SB 1360, SD-1

INTRODUCED BY:  Senate Committee on Ways & Means

EXECUTIVE SUMMARY:  Requires partnerships, estates, and trusts to withhold taxes on the income of nonresident partners and beneficiaries.  There may be constitutional concerns, as the Attorney General has stated in testimony on SB 675 (2019).

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SB 887, SD-2

SUBJECT:  TOBACCO, Increase Tobacco Tax Rate on Cigarettes and Little Cigars

BILL NUMBER:  SB 887, SD-2

INTRODUCED BY:  Senate Committee on Ways & Means

EXECUTIVE SUMMARY:  This is a 30%+ tax increase beginning on 7/1/19 on cigarettes and little cigars.  The increased taxes are having an effect on consumption, which means the tax cannot be expected to produce stable funding.  Lawmakers may want to consider direct appropriations to programs now being supported by earmarks from this tax.

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SB 530, SD-2

SUBJECT:  GENERAL EXCISE, Exempt Mobility Enhancing and Durable Medical Equipment

BILL NUMBER:  SB 530, SD-2

INTRODUCED BY:  Senate Committee on Ways & Means

EXECUTIVE SUMMARY:  Expands the current exemption for prescription drugs and prosthetic devices to include more items specific to health care.  The expanded list of items appears to be consistent with the policy justification for the original exemption.  In addition, some of the changes in this bill would rectify an anomaly that exists under current law.

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