1205
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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 237-4, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§237-4  "Wholesaler", "jobber", defined.  "Wholesaler" or
 
 4 "jobber" applies only to a person making sales at wholesale.
 
 5 Only the following are sales at wholesale:
 
 6      (1)  Sales to a licensed retail merchant, jobber, or other
 
 7           licensed seller for purposes of resale;
 
 8      (2)  Sales to a licensed manufacturer of material or
 
 9           commodities which are to be incorporated by the
 
10           manufacturer into a finished or saleable product
 
11           (including the container or package in which the
 
12           product is contained) during the course of its
 
13           preservation, manufacture, or processing, including
 
14           preparation for market, and which will remain in such
 
15           finished or saleable product in such form as to be
 
16           perceptible to the senses, which finished or saleable
 
17           product is to be sold and not otherwise used by the
 
18           manufacturer;
 
19      (3)  Sales to a licensed producer or cooperative association
 

 
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 1           of materials or commodities which are to be
 
 2           incorporated by the producer or by the cooperative
 
 3           association into a finished or saleable product which
 
 4           is to be sold and not otherwise used by the producer or
 
 5           cooperative association, including specifically
 
 6           materials or commodities expended as essential to the
 
 7           planting, growth, nurturing, and production of
 
 8           commodities which are sold by the producer or by the
 
 9           cooperative association;
 
10      (4)  Sales to a licensed contractor, of material or
 
11           commodities which are to be incorporated by the
 
12           contractor into the finished work or project required
 
13           by the contract and which will remain in such finished
 
14           work or project in such form as to be perceptible to
 
15           the senses;
 
16      (5)  Sales to a licensed producer, or to a cooperative
 
17           association described in section 237-23(a)(7) for sale
 
18           to such producer, or to a licensed person operating a
 
19           feed lot, of poultry or animal feed, hatching eggs,
 
20           semen, replacement stock, breeding services for the
 
21           purpose of raising or producing animal or poultry
 
22           products for disposition as described in section 237-5
 
23           or to be incorporated in a manufactured product as
 

 
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 1           described in paragraph (2) or for the purpose of
 
 2           breeding, hatching, milking, or egg laying other than
 
 3           for the customer's own consumption of the meat,
 
 4           poultry, eggs, or milk so produced; provided that in
 
 5           the case of a feed lot operator, only the segregated
 
 6           cost of the feed furnished by the feed lot operator as
 
 7           part of the feed lot operator's service to a licensed
 
 8           producer of poultry or animals to be butchered or to a
 
 9           cooperative association described in section 237-
 
10           23(a)(7) of such licensed producers shall be deemed to
 
11           be a sale at wholesale; and provided further that any
 
12           amount derived from the furnishing of feed lot
 
13           services, other than the segregated cost of feed, shall
 
14           be deemed taxable at the service business rate.  This
 
15           paragraph shall not apply to the sale of feed for
 
16           poultry or animals to be used for hauling,
 
17           transportation, or sports purposes;
 
18      (6)  Sales to a licensed producer, or to a cooperative
 
19           association described in section 237-23(a)(7) for sale
 
20           to the producer, of seed for producing agricultural
 
21           products, or bait for catching fish (including the
 
22           catching of bait for catching fish), which agricultural
 
23           products or fish are to be disposed of as described in
 

 
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 1           section 237-5 or to be incorporated in a manufactured
 
 2           product as described in paragraph (2);
 
 3      (7)  Sales to a licensed producer, or to a cooperative
 
 4           association described in section 237-23(a)(7) for sale
 
 5           to such producer; of polypropylene shade cloth; of
 
 6           polyfilm; of polyethylene film; of cartons and such
 
 7           other containers, wrappers, and sacks, and binders to
 
 8           be used for packaging eggs, vegetables, fruits, and
 
 9           other agricultural products; of seedlings and cuttings
 
10           for producing nursery plants; or of chick containers;
 
11           which cartons and such other containers, wrappers, and
 
12           sacks, binders, seedlings, cuttings, and containers are
 
13           to be used as described in section 237-5, or to be
 
14           incorporated in a manufactured product as described in
 
15           paragraph (2);
 
16      (8)  Sales of tangible personal property to a licensed
 
17           person engaged in the service business; provided that
 
18           (A) the property is not consumed or incidental to the
 
19           performance of the services; (B) there is a resale of
 
20           the article at the retail rate of four per cent; and
 
21           (C) the resale of the article is separately charged or
 
22           billed by the person rendering the services;
 
23      (9)  Sales to a licensed leasing company of capital goods
 

 
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 1           which are thereafter leased as a service to others.
 
 2           Capital goods means goods which have a depreciable life
 
 3           and which are purchased by the leasing company for
 
 4           lease to its customers[.];
 
 5     (10)  Sales to a licensed retail merchant, jobber, or other
 
 6           licensed seller of bulk condiments or prepackaged
 
 7           single-serving packets of condiments that are provided
 
 8           to customers by the licensed retail merchant, jobber,
 
 9           or other licensed seller;
 
10     (11)  Sales to a licensed retail merchant, jobber, or other
 
11           licensed seller of tangible personal property that will
 
12           be incorporated or processed by the licensed retail
 
13           merchant, jobber, or other licensed seller into a
 
14           finished or saleable product during the course of its
 
15           preparation for market (including disposable,
 
16           nonreturnable containers, packages, or wrappers, in
 
17           which the product is contained and that are generally
 
18           known and most commonly used to contain food or
 
19           beverage for transfer or delivery); and which finished
 
20           or saleable product is to be sold and not otherwise
 
21           used by the licensed retail merchant, jobber, or other
 
22           licensed seller.
 
23      If the use tax law is finally held by a court of competent
 

 
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 1 jurisdiction to be unconstitutional or invalid insofar as it
 
 2 purports to tax the use or consumption of tangible personal
 
 3 property imported into the State in interstate or foreign
 
 4 commerce or both, wholesalers and jobbers shall be taxed
 
 5 thereafter under this chapter in accordance with the following
 
 6 definition (which shall supersede the preceding paragraph
 
 7 otherwise defining "wholesaler" or "jobber"): "Wholesaler" or
 
 8 "jobber" means a person, or a definitely organized division
 
 9 thereof, definitely organized to render and rendering a general
 
10 distribution service which buys and maintains at the person's
 
11 place of business a stock or lines of merchandise which the
 
12 person distributes; and which, through salespersons, advertising,
 
13 or sales promotion devices, sells to licensed retailers, to
 
14 institutional or licensed commercial or industrial users, in
 
15 wholesale quantities and at wholesale rates.  A corporation
 
16 deemed not to be carrying on a trade or business in this State
 
17 under section 235-6 shall nevertheless be deemed to be a
 
18 wholesaler and shall be subject to the tax imposed by this
 
19 chapter."
 
20      SECTION 2.  Section 237-13, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§237-13 Imposition of tax.  There is hereby levied and
 
23 shall be assessed and collected annually privilege taxes against
 

 
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 1 persons on account of their business and other activities in the
 
 2 State measured by the application of rates against values of
 
 3 products, gross proceeds of sales, or gross income, whichever is
 
 4 specified, as follows:
 
 5      (1)  Tax on manufacturers.
 
 6           (A)  Upon every person engaging or continuing within
 
 7                the State in the business of manufacturing,
 
 8                including compounding, canning, preserving,
 
 9                packing, printing, publishing, milling,
 
10                processing, refining, or preparing for sale,
 
11                profit, or commercial use, either directly or
 
12                through the activity of others, in whole or in
 
13                part, any article or articles, substance or
 
14                substances, commodity or commodities, the amount
 
15                of the tax to be equal to the value of the
 
16                articles, substances, or commodities,
 
17                manufactured, compounded, canned, preserved,
 
18                packed, printed, milled, processed, refined, or
 
19                prepared, for sale, as shown by the gross proceeds
 
20                derived from the sale thereof by the manufacturer
 
21                or person compounding, preparing, or printing
 
22                them, multiplied by one-half of one per cent.
 
23           (B)  The measure of the tax on manufacturers is the
 

 
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 1                value of the entire product for sale, regardless
 
 2                of the place of sale or the fact that deliveries
 
 3                may be made to points outside the State.
 
 4           (C)  If any person liable for the tax on manufacturers
 
 5                ships or transports the person's product, or any
 
 6                part thereof, out of the State, whether in a
 
 7                finished or unfinished condition, or sells the
 
 8                same for delivery outside of the State (for
 
 9                example, consigned to a mainland purchaser via
 
10                common carrier f.o.b. Honolulu), the value of the
 
11                products in the condition or form in which they
 
12                exist immediately before entering interstate or
 
13                foreign commerce, determined as hereinafter
 
14                provided, shall be the basis for the assessment of
 
15                the tax imposed by this paragraph.  This tax shall
 
16                be due and payable as of the date of entry of the
 
17                products into interstate or foreign commerce,
 
18                whether the products are then sold or not.  The
 
19                department of taxation shall determine the basis
 
20                for assessment, as provided by this paragraph, as
 
21                follows:
 
22                (i)  If the products at the time of their entry
 
23                     into interstate or foreign commerce already
 

 
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 1                     have been sold, the gross proceeds of sale,
 
 2                     less the transportation expenses, if any,
 
 3                     incurred in realizing the gross proceeds for
 
 4                     transportation from the time of entry of the
 
 5                     products into interstate or foreign commerce,
 
 6                     including insurance and storage in transit,
 
 7                     shall be the measure of the value of the
 
 8                     products.
 
 9               (ii)  If the products have not been sold at the
 
10                     time of their entry into interstate or
 
11                     foreign commerce, and in cases governed by
 
12                     clause (i) in which the products are sold
 
13                     under circumstances such that the gross
 
14                     proceeds of sale are not indicative of the
 
15                     true value of the products, the value of the
 
16                     products constituting the basis for
 
17                     assessment shall correspond as nearly as
 
18                     possible to the gross proceeds of sales for
 
19                     delivery outside the State, adjusted as
 
20                     provided in clause (i), or if sufficient data
 
21                     are not available, sales in the State, of
 
22                     similar products of like quality and
 
23                     character and in similar quantities, made by
 

 
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 1                     the taxpayer (unless not indicative of the
 
 2                     true value) or by others.  Sales outside the
 
 3                     State, adjusted as provided in clause (i),
 
 4                     may be considered when they constitute the
 
 5                     best available data.  The department shall
 
 6                     prescribe uniform and equitable rules for
 
 7                     ascertaining the values.
 
 8              (iii)  At the election of the taxpayer and with the
 
 9                     approval of the department, the taxpayer may
 
10                     make the taxpayer's returns under clause (i)
 
11                     even though the products have not been sold
 
12                     at the time of their entry into interstate or
 
13                     foreign commerce.
 
14               (iv)  In all cases in which products leave the
 
15                     State in an unfinished condition, the basis
 
16                     for assessment shall be adjusted so as to
 
17                     deduct the portion of the value as is
 
18                     attributable to the finishing of the goods
 
19                     outside the State.
 
20      (2)  Tax on business of selling tangible personal property;
 
21           producing.
 
22           (A)  Upon every person engaging or continuing in the
 
23                business of selling any tangible personal property
 

 
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 1                whatsoever (not including, however, bonds or other
 
 2                evidence of indebtedness, or stocks), there is
 
 3                likewise hereby levied, and shall be assessed and
 
 4                collected, a tax equivalent to four per cent of
 
 5                the gross proceeds of sales of the business;
 
 6                provided that insofar as certain retailing is
 
 7                taxed by section 237-16, the tax shall be that
 
 8                levied by section 237-16, and in the case of a
 
 9                wholesaler, the tax shall be equal to one-half of
 
10                one per cent of the gross proceeds of sales of the
 
11                business.  Upon every person engaging or
 
12                continuing within this State in the business of a
 
13                producer, the tax shall be equal to one-half of
 
14                one per cent of the gross proceeds of sales of the
 
15                business, or the value of the products, for sale,
 
16                if sold for delivery outside the State or shipped
 
17                or transported out of the State, and the value of
 
18                the products shall be determined in the same
 
19                manner as the value of manufactured products
 
20                covered in the cases under paragraph (1)(C).
 
21           (B)  Gross proceeds of sales of tangible property in
 
22                interstate and foreign commerce shall constitute a
 
23                part of the measure of the tax imposed on persons
 

 
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 1                in the business of selling tangible personal
 
 2                property, to the extent, under the conditions, and
 
 3                in accordance with the provisions of the
 
 4                Constitution of the United States and the Acts of
 
 5                the Congress of the United States which may be now
 
 6                in force or may be hereafter adopted, and whenever
 
 7                there occurs in the State an activity to which,
 
 8                under the Constitution and Acts of Congress, there
 
 9                may be attributed gross proceeds of sales, the
 
10                gross proceeds shall be so attributed.
 
11           (C)  No manufacturer or producer, engaged in such
 
12                business in the State and selling the
 
13                manufacturer's or producer's products for delivery
 
14                outside of the State (for example, consigned to a
 
15                mainland purchaser via common carrier f.o.b.
 
16                Honolulu), shall be required to pay the tax
 
17                imposed in this chapter for the privilege of so
 
18                selling the products, and the value or gross
 
19                proceeds of sales of the products shall be
 
20                included only in determining the measure of the
 
21                tax imposed upon the manufacturer or producer.
 
22           (D)  When a manufacturer or producer, engaged in such
 
23                business in the State, also is engaged in selling
 

 
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 1                the manufacturer's or producer's products in the
 
 2                State at wholesale, retail, or in any other
 
 3                manner, the tax for the privilege of engaging in
 
 4                the business of selling the products in the State
 
 5                shall apply to the manufacturer or producer as
 
 6                well as the tax for the privilege of manufacturing
 
 7                or producing in the State, and the manufacturer or
 
 8                producer shall make the returns of the gross
 
 9                proceeds of the wholesale, retail, or other sales
 
10                required for the privilege of selling in the
 
11                State, as well as making the returns of the value
 
12                or gross proceeds of sales of the products
 
13                required for the privilege of manufacturing or
 
14                producing in the State.  The manufacturer or
 
15                producer shall pay the tax imposed in this chapter
 
16                for the privilege of selling its products in the
 
17                State, and the value or gross proceeds of sales of
 
18                the products, thus subjected to tax, may be
 
19                deducted insofar as duplicated as to the same
 
20                products by the measure of the tax upon the
 
21                manufacturer or producer for the privilege of
 
22                manufacturing or producing in the State; except
 
23                that no producer of agricultural products who
 

 
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 1                sells the products to a purchaser who will process
 
 2                the products outside the State shall be required
 
 3                to pay the tax imposed in this chapter for the
 
 4                privilege of producing or selling those products.
 
 5           (E)  A taxpayer selling to a federal cost-plus
 
 6                contractor may make the election provided for by
 
 7                paragraph (3)(C), and in that case the tax shall
 
 8                be computed pursuant to the election,
 
 9                notwithstanding this paragraph or paragraph (1) to
 
10                the contrary.
 
11           (F)  The department, by rule, may provide that a seller
 
12                may take from the purchaser of tangible personal
 
13                property a certificate, in a form as the
 
14                department shall prescribe, certifying that the
 
15                sale is a sale at wholesale.  If the certificate
 
16                is so provided for by rule of the department:
 
17                (i)  Any purchaser who furnishes a certificate
 
18                     shall be obligated to pay to the seller, upon
 
19                     demand, if the sale in fact is not at
 
20                     wholesale, the amount of the additional tax
 
21                     which by reason thereof is imposed upon the
 
22                     seller; and
 
23               (ii)  The absence of a certificate, unless the
 

 
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 1                     sales of the business are exclusively at
 
 2                     wholesale, in itself shall give rise to the
 
 3                     presumption that the sale is not at
 
 4                     wholesale.
 
 5      (3)  Tax upon contractors.
 
 6           (A)  Upon every person engaging or continuing within
 
 7                the State in the business of contracting, the tax
 
 8                shall be equal to four per cent of the gross
 
 9                income of the business; provided that insofar as
 
10                the business of contracting is taxed by section
 
11                237-16, which relates to certain retailing, the
 
12                tax shall be that levied by section 237-16.
 
13           (B)  In computing the tax levied under this paragraph
 
14                or section 237-16, there shall be deducted from
 
15                the gross income of the taxpayer so much thereof
 
16                as has been included in the measure of the tax
 
17                levied under subparagraph (A) or section 237-16,
 
18                on:
 
19                (i)  Another taxpayer who is a contractor, as
 
20                     defined in section 237-6;
 
21               (ii)  A specialty contractor, duly licensed by the
 
22                     department of commerce and consumer affairs
 
23                     pursuant to section 444-9, in respect of the
 

 
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 1                     specialty contractor's business; or
 
 2              (iii)  A specialty contractor who is not licensed by
 
 3                     the department of commerce and consumer
 
 4                     affairs pursuant to section 444-9, but who
 
 5                     performs contracting activities on federal
 
 6                     military installations and nowhere else in
 
 7                     this State;
 
 8                but any person claiming a deduction under this
 
 9                paragraph shall be required to show in the
 
10                person's return the name and general excise number
 
11                of the person paying the tax on the amount
 
12                deducted by the person.
 
13           (C)  In computing the tax levied under this paragraph
 
14                against any federal cost-plus contractor, there
 
15                shall be excluded from the gross income of the
 
16                contractor so much thereof as fulfills the
 
17                following requirements:
 
18                (i)  The gross income exempted shall constitute
 
19                     reimbursement of costs incurred for
 
20                     materials, plant, or equipment purchased from
 
21                     a taxpayer licensed under this chapter, not
 
22                     exceeding the gross proceeds of sale of the
 
23                     taxpayer on account of the transaction; and
 

 
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 1               (ii)  The taxpayer making the sale shall have
 
 2                     certified to the department that the taxpayer
 
 3                     is taxable with respect to the gross proceeds
 
 4                     of the sale, and that the taxpayer elects to
 
 5                     have the tax on gross income computed the
 
 6                     same as upon a sale to the state government.
 
 7           (D)  A person who, as a business or as a part of a
 
 8                business in which the person is engaged, erects,
 
 9                constructs, or improves any building or structure,
 
10                of any kind or description, or makes, constructs,
 
11                or improves any road, street, sidewalk, sewer, or
 
12                water system, or other improvements on land held
 
13                by the person (whether held as a leasehold, fee
 
14                simple, or otherwise), upon the sale or other
 
15                disposition of the land or improvements, even if
 
16                the work was not done pursuant to a contract,
 
17                shall be liable to the same tax as if engaged in
 
18                the business of contracting, unless the person
 
19                shows that at the time the person was engaged in
 
20                making the improvements it was, and for the period
 
21                of at least one year after completion of the
 
22                building, structure, or other improvements, it
 
23                continued to be the person's purpose to hold and
 

 
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 1                not sell or otherwise dispose of the land or
 
 2                improvements.  The tax in respect of the
 
 3                improvements shall be measured by the amount of
 
 4                the proceeds of the sale or other disposition that
 
 5                is attributable to the erection, construction, or
 
 6                improvement of such building or structure, or the
 
 7                making, constructing, or improving of the road,
 
 8                street, sidewalk, sewer, or water system, or other
 
 9                improvements.  The measure of tax in respect of
 
10                the improvements shall not exceed the amount which
 
11                would have been taxable had the work been
 
12                performed by another, subject as in other cases to
 
13                the deductions allowed by subparagraph (B).  Upon
 
14                the election of the taxpayer, this paragraph may
 
15                be applied notwithstanding the improvements were
 
16                not made by the taxpayer, or were not made as a
 
17                business or as a part of a business, or were made
 
18                with the intention of holding the same.  However,
 
19                this paragraph shall not apply in respect of any
 
20                proceeds that constitute or are in the nature of
 
21                rent; all such gross income shall be taxable under
 
22                paragraph [(10);] (9); provided that insofar as
 
23                the business of renting or leasing real property
 

 
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 1                under a lease is taxed under section 237-16.5, the
 
 2                tax shall be levied by section 237-16.5.
 
 3      (4)  Tax upon theaters, amusements, radio broadcasting
 
 4           stations, etc.  Upon every person engaging or
 
 5           continuing within the State in the business of
 
 6           operating a theater, opera house, moving picture show,
 
 7           vaudeville, amusement park, dance hall, skating rink,
 
 8           radio broadcasting station, or any other place at which
 
 9           amusements are offered to the public, the tax shall be
 
10           equal to four per cent of the gross income of the
 
11           business.
 
12      (5)  Tax upon sales representatives, etc.  Upon every person
 
13           classified as a representative or purchasing agent
 
14           under section 237-1, engaging or continuing within the
 
15           State in the business of performing services for
 
16           another, other than as an employee, there is likewise
 
17           hereby levied and shall be assessed and collected a tax
 
18           equal to four per cent of the commissions and other
 
19           compensation attributable to the services so rendered
 
20           by the person.
 
21      (6)  Tax on service business.  Upon every person engaging or
 
22           continuing within the State in any service business or
 
23           calling [not otherwise specifically taxed under this
 

 
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 1           chapter], including those engaging or continuing within
 
 2           the State in the practice of a profession and those
 
 3           expounding the religious doctrines of any church, there
 
 4           is likewise hereby levied and shall be assessed and
 
 5           collected a tax equal to four per cent of the gross
 
 6           income of the business; [provided that where any person
 
 7           engaging or continuing within the State in any service
 
 8           business or calling renders those services upon the
 
 9           order of or at the request of another taxpayer who is
 
10           engaged in the service business and who, in fact, acts
 
11           as or acts in the nature of an intermediary between the
 
12           person rendering those services and the ultimate
 
13           recipient of the benefits of those services, so much of
 
14           the gross income as is received by the person rendering
 
15           the services shall be subjected to the tax at the rate
 
16           of one-half of one per cent and all of the gross income
 
17           received by the intermediary from the principal shall
 
18           be subjected to a tax at the rate of four per cent;]
 
19           and provided that where any person is engaged in the
 
20           business of selling interstate or foreign common
 
21           carrier telecommunication services within and without
 
22           the State, the tax shall be imposed on that portion of
 
23           gross income received by a person from service which is
 

 
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 1           originated or terminated in this State and is charged
 
 2           to a telephone number, customer, or account in this
 
 3           State notwithstanding any other state law (except for
 
 4           the exemption under section 237-23(a)(1)) to the
 
 5           contrary.  If, under the Constitution and laws of the
 
 6           United States, the entire gross income as determined
 
 7           under this paragraph of a business selling interstate
 
 8           or foreign common carrier telecommunication services
 
 9           cannot be included in the measure of the tax, the gross
 
10           income shall be apportioned as provided in section 237-
 
11           21; provided that the apportionment factor and formula
 
12           shall be the same for all persons providing those
 
13           services in the State.
 
14      (7)  Tax on insurance solicitors and agents.  Upon every
 
15           person engaged as a licensed solicitor, general agent,
 
16           or subagent pursuant to chapter 431, there is hereby
 
17           levied and shall be assessed and collected a tax equal
 
18           to .15 per cent of the commissions due to that
 
19           activity.
 
20     [(8)  Professions.  Upon every person engaging or continuing
 
21           within the State in the practice of a profession,
 
22           including those expounding the religious doctrines of
 
23           any church, there is likewise hereby levied and shall
 

 
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 1           be assessed and collected a tax equal to four per cent
 
 2           of the gross income on the practice or exposition.
 
 3      (9)] (8)  Tax on receipts of sugar benefit payments.  Upon
 
 4           the amounts received from the United States government
 
 5           by any producer of sugar (or the producer's legal
 
 6           representative or heirs), as defined under and by
 
 7           virtue of the Sugar Act of 1948, as amended, or other
 
 8           Acts of the Congress of the United States relating
 
 9           thereto, there is hereby levied a tax of one-half of
 
10           one per cent of the gross amount received, provided
 
11           that the tax levied hereunder on any amount so received
 
12           and actually disbursed to another by a producer in the
 
13           form of a benefit payment shall be paid by the person
 
14           or persons to whom the amount is actually disbursed,
 
15           and the producer actually making a benefit payment to
 
16           another shall be entitled to claim on the producer's
 
17           return a deduction from the gross amount taxable
 
18           hereunder in the sum of the amount so disbursed.  The
 
19           amounts taxed under this paragraph shall not be taxable
 
20           under any other paragraph, subsection, or section of
 
21           this chapter.
 
22    [(10)] (9)  Tax on other business.  Upon every person engaging
 
23           or continuing within the State in any business, trade,
 

 
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 1           activity, occupation, or calling not included in the
 
 2           preceding paragraphs or any other provisions of this
 
 3           chapter, there is likewise hereby levied and shall be
 
 4           assessed and collected, a tax equal to four per cent of
 
 5           the gross income thereof.  In addition, the rate
 
 6           prescribed by this paragraph shall apply to a business
 
 7           taxable under one or more of the preceding paragraphs
 
 8           or other provisions of this chapter, as to any gross
 
 9           income thereof not taxed thereunder as gross income or
 
10           gross proceeds of sales or by taxing an equivalent
 
11           value of products, unless specifically exempted."
 
12      SECTION 3.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 4.  This Act shall take effect upon its approval;
 
15 provided that section 1 shall apply to gross receipts received
 
16 after June 30, 1999.
 
17 
 
18                           INTRODUCED BY:  _______________________
 

 
a                                                     TAX-10(99)