Bill Text: HI SB2841 | 2022 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Introduced - Dead) 2022-01-24 - Referred to CPN, WAM. [SB2841 Detail]
Download: Hawaii-2022-SB2841-Introduced.html
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THE SENATE |
S.B. NO. |
2841 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§237- Exemption of agricultural products. There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or income arising from the manufacture, production, packaging, and sale of agricultural products, including but not limited to produce, dairy products, eggs, fish, and meat.
§237- Exemption of over-the-counter medical products. (a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or income arising from the sale of:
(1) Over-the-counter nonprescription medications;
(2) Medical supplies; and
(3) Menstrual care products.
(b) For purposes of this section:
"Medical
supplies" means items for medical use that are suitable for use in a
health care facility or in the home.
"Menstrual
care product" means a tampon, pad, liner, cup, sponge, or similar product
used by individuals with respect to menstruation or other genital-tract
secretions.
"Over-the-counter nonprescription medications" means drugs or medications that can be purchased without a prescription, such as aspirin, cough syrup, and laxatives."
PART II
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Luxury
motor vehicles; surcharge. (a) In
addition to the tax imposed by section 237-13 or any other provision in this
chapter, there is levied and shall be assessed and collected an additional surcharge
on the gross proceeds of sales of luxury motor vehicles. Upon every sale of a luxury motor vehicle, regardless
of whether the vehicle is new or used, the amount of the surcharge shall be equal
to thirty-three per cent of the gross proceeds in excess of the cap amount specified
in subsection (b). All
provisions of this chapter shall apply to the surcharge. With respect to the surcharge, the director of
taxation shall have all the rights and powers provided under this chapter.
(b) The surcharge established in subsection (a) shall
be applied to the sale of luxury motor vehicles as follows:
(1) For fuel-efficient vehicles, to the portion of the gross proceeds that exceeds $70,000; and
(2) For all other motor vehicles, to the portion of the gross proceeds that exceeds $60,000.
(c)
The surcharge shall be imposed on the gross proceeds or gross income of
all written contracts that require the passing on of the taxes imposed under
this chapter; provided that if the gross proceeds or gross income are received
as payments beginning in the taxable year in which the taxes become effective,
on contracts entered into before June 30 of the year prior to the taxable year
in which the taxes become effective, and the written contracts do not provide
for the passing on of increased rates of taxes, the surcharge shall not be
imposed on the gross proceeds or gross income covered under the written
contracts. The surcharge shall be
imposed on the gross proceeds or gross income from all contracts entered into
on or after June 30 of the year prior to the taxable year in which the
taxes become effective, regardless of whether the contract allows for the
passing on of any tax or any tax increases.
(d)
No surcharge under this section shall be established on any:
(1) Gross income or gross proceeds taxable under this chapter at the one-half per cent tax rate;
(2) Gross income or gross proceeds taxable under this chapter at the 0.15 per cent tax rate; or
(3) Transactions, amounts, persons, gross income, or gross proceeds exempt from tax under this chapter.
(e)
The director of taxation shall revise the general excise tax forms to
provide for the clear and separate designation of the imposition and payment of
the surcharge.
(f)
All taxpayers who file on a fiscal year basis whose fiscal year ends
after December 31 of the year prior to the taxable year in which the taxes
become effective, shall file a short period annual return for the period preceding
January 1 of the taxable year in which the taxes become effective. Each fiscal year taxpayer shall also file a
short period annual return for the period starting on January 1 of the taxable
year in which the taxes become effective, and ending before January 1 of the
following year.
(g) For the purposes of this section:
"Alternative fuel vehicle" has
the same meaning as contained in title 10 Code of Federal Regulations part 490.
"Authorized emergency vehicle"
has the same meaning as defined in section 291C-1.
"Electric vehicle" has the
same meaning as defined in section 291-71.
"Fuel-efficient vehicle" means
an electric vehicle or alternative fuel vehicle.
"Luxury motor vehicle" means a
motor vehicle where the published manufacturer's suggested retail price, at the
time of initial sale, exceeds the cap amount specified in subsection (b).
"Luxury motor vehicle" does not
include:
(1) Trucks or vans capable of carrying more than two tons;
(2) Motorhomes and campervans;
(3) Authorized emergency vehicles; and
(4) Vehicles specifically fitted out for transporting passengers with a disability.
"Motor vehicle" has the same
meaning as defined in section 286-2."
SECTION 3. Chapter 238, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§238- Luxury
motor vehicles; surcharge. (a) In
addition to the tax imposed by section 238-2 or any other provision in this
chapter, there is levied and shall be assessed and collected an additional surcharge
on the value of luxury motor vehicles taxable under this chapter. Upon importation into the State, regardless of
whether the vehicle is new or used, the amount of the surcharge shall be equal to
thirty-three per cent of the value of the property taxable under this chapter in
excess of the cap amount specified in subsection (b). All provisions of this chapter
shall apply to the surcharge. With
respect to the surcharge, the director of taxation shall have all the rights
and powers provided under this chapter.
(b) The surcharge established in subsection (a) shall
be applied to the use of luxury motor vehicles as follows:
(1) For fuel-efficient vehicles, to the portion of the value of the vehicle that exceeds $70,000; and
(2) For all other motor vehicles, to the portion of the value of the vehicle that exceeds $60,000.
(c)
No surcharge under this section shall be established upon any use
taxable under this chapter at the one-half per cent tax rate or upon any use
that is not subject to taxation or that is exempt from taxation under this
chapter.
(d)
The director of taxation shall revise the use tax forms to provide for
the clear and separate designation of the imposition and payment of the surcharge.
(e)
All taxpayers who file on a fiscal year basis whose fiscal year ends
after December 31 of the year prior to the taxable year in which the taxes
become effective, shall file a short period annual return for the period
preceding January 1 of the taxable year in which the taxes become
effective. Each fiscal year taxpayer
shall also file a short period annual return for the period starting on January
1 of the taxable year in which the taxes become effective, and ending before
January 1 of the following year.
(f) For the purposes of this section:
"Alternative fuel vehicle" has
the same meaning as contained in title 10 Code of Federal Regulations part 490.
"Authorized emergency vehicle"
has the same meaning as defined in section 291C-1.
"Electric vehicle" has the
same meaning as defined in section 291-71.
"Fuel-efficient vehicle" means
an electric vehicle or alternative fuel vehicle.
"Luxury motor vehicle" means a
motor vehicle where the published manufacturer's suggested retail price, at the
time of initial sale, exceeds the cap amount specified in subsection (b).
"Luxury motor vehicle" does not
include:
(1) Trucks or vans capable of carrying more than two tons;
(2) Motorhomes and campervans;
(3) Authorized emergency vehicles; and
(4) Vehicles specifically fitted out for transporting passengers with a disability.
"Motor vehicle" has the same
meaning as defined in section 286-2."
SECTION 4. Section 286-41, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) The owner of every motor vehicle of the current, previous, and subsequent year model bought out-of-state, subsequently brought into the State, and subject to the use tax under chapter 238 shall provide with the application for registration proof of payment of the use tax, including all surcharges applicable under chapter 238, pursuant to requirements established by the department of taxation. No registration certificate shall be issued without proof of payment of the use tax."
PART III
SECTION 5. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2022; provided that part II shall take effect on January 1, 2023.
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INTRODUCED BY: |
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Report Title:
Taxation; General Excise Tax; Use Tax; Exemption; Agricultural Products; Over-The-Counter Drugs, Medical Supplies, and Menstrual Products; Surcharge; Luxury Cars
Description:
Exempts agricultural products, including produce, meat, and fish, from the general excise tax. Exempts over-the-counter drugs, medical supplies, and menstrual products from the general excise tax. Establishes a surcharge on the general excise tax and use tax for the sale or use of luxury cars.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
