REPORT TITLE:
GET; Fireworks; Oxygen Tanks


DESCRIPTION:
Raises general excise tax rate for gross income collected from
the sale of fireworks for the purchase of oxygen tanks.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2146
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO FIREWORKS.



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

 1      SECTION 1.  Chapter 346, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§346-     Fireworks assistance special fund.  (a)  There is
 
 5 established in the state treasury the fireworks assistance
 
 6 special fund, into which shall be deposited the proceeds
 
 7 collected pursuant to section 237-31(4).
 
 8      (b)  Moneys in the fireworks assistance special fund shall
 
 9 be used for the purchase of medically certified oxygen tanks and
 
10 masks to assist persons designated by rule who suffer from
 
11 respiratory ailments and are susceptible to the smoke resulting
 
12 from fireworks displays.
 
13      (c)  All unexpended and unencumbered moneys remaining in the
 
14 fireworks assistance special fund at the close of each fiscal
 
15 year which are deemed by the director to be in excess of the
 
16 moneys necessary to carry out the purposes of this section over
 
17 the next following fiscal year shall lapse to the credit of the
 
18 state general fund.
 
19      (d)  The department shall adopt rules pursuant to chapter 91
 

 
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 1 to effectuate this section, including criteria for selecting
 
 2 persons who qualify to use the oxygen tanks and masks."
 
 3      SECTION 2.  Section 237-16, Hawaii Revised Statutes, is
 
 4 amended:
 
 5      1.   By amending subsections (a) and (b) to read as follows:
 
 6      "(a)  This section relates to certain retailing in the State
 
 7 as follows:
 
 8      (1)  This section relates to the sale of tangible personal
 
 9           property, for consumption or use by the purchaser and
 
10           not for resale, the renting of tangible personal
 
11           property, and the rendering of services by one engaged
 
12           in a service business or calling, as defined, to a
 
13           person who is not purchasing the services for resale,
 
14           but does not relate to the sale or rental of tangible
 
15           personal property or the rendering of services to the
 
16           State, its political subdivisions, or agencies or
 
17           instrumentalities of the State or a political
 
18           subdivision, or to the United States or its agencies or
 
19           instrumentalities (other than national banks), or to a
 
20           corporation, organization, or other person designated
 
21           in section 237-23 who is not subject to the tax imposed
 
22           by this chapter, or to a person licensed under this
 
23           chapter in connection with the person's business.
 

 
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 1      (2)  This section relates to the business of a contractor,
 
 2           as defined, but does not relate to contracting with, or
 
 3           any gross income or proceeds of a subcontractor if the
 
 4           principal contract is with the State, its political
 
 5           subdivisions, or agencies or instrumentalities of the
 
 6           State or a political subdivision, or with the United
 
 7           States or its agencies or instrumentalities (other than
 
 8           national banks), or with a person designated in section
 
 9           237-23 who is not subject to the tax imposed by this
 
10           chapter, or with a person licensed under this chapter
 
11           in connection with the person's business.
 
12      (3)  This section relates to furnishing of transient
 
13           accommodations in a hotel, apartment hotel, or other
 
14           place in which lodgings are regularly furnished to
 
15           transients for a consideration which includes the
 
16           rendering of services.
 
17      (4)  This section relates to the sale of fireworks pursuant
 
18           to chapter 132D, for the use of the purchaser and not
 
19           for resale.
 
20      (b)  There is [hereby] levied, [and shall be] assessed, and
 
21 collected annually, a privilege tax against persons engaging or
 
22 continuing within the State in the retailing to which this
 
23 section relates, on account of such retailing activities, as set
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 forth [in subsection (a), equal to four per cent of the gross
 
 2 proceeds of sale or gross income received or derived from such
 
 3 retailing.]:
 
 4      (1)  In subsection (a)(1) to (3), equal to four per cent of
 
 5           the gross proceeds of sale or gross income received or
 
 6           derived from such retailing.
 
 7      (2)  In subsection (a)(4), equal to      per cent of the
 
 8           gross proceeds of sale or gross income received or
 
 9           derived from such retailing.
 
10 Persons on whom a tax is imposed by this section hereinafter are
 
11 called "retailers"."
 
12      2.                                                  13      "(d)  This section shall not cause the tax upon a taxpayer,
 
14 with respect to any item of the taxpayer's gross income, to
 
15 exceed [four per cent.] the rates set forth in subsection (b)."
 
16      SECTION 3.  Section 237-31, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§237-31  Remittances.  All remittances of taxes imposed by
 
19 this chapter shall be made by money, bank draft, check, cashier's
 
20 check, money order, or certificate of deposit to the office of
 
21 the department of taxation to which the return was transmitted.
 
22 The department shall issue its receipts therefor to the taxpayer
 
23 and shall pay the moneys into the state treasury as a state
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 realization, to be kept and accounted for as provided by law;
 
 2 provided that:
 
 3      (1)  The sum from all general excise tax revenues realized
 
 4           by the State that represents the difference between
 
 5           $45,000,000 and the proceeds from the sale of any
 
 6           general obligation bonds authorized for that fiscal
 
 7           year for the purposes of the state educational
 
 8           facilities improvement special fund shall be deposited
 
 9           in the state treasury in each fiscal year to the credit
 
10           of the state educational facilities improvement special
 
11           fund;
 
12      (2)  A sum, not to exceed $5,000,000, from all general
 
13           excise tax revenues realized by the State shall be
 
14           deposited in the state treasury in each fiscal year to
 
15           the credit of the compound interest bond reserve fund;
 
16           [and]
 
17      (3)  A sum, not to exceed the amount necessary to meet the
 
18           obligations of the integrated tax information
 
19           management systems performance-based contract may be
 
20           retained and deposited in the state treasury to the
 
21           credit of the integrated tax information management
 
22           systems special fund.  The sum retained by the director
 
23           of taxation for deposit to the integrated tax
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           information [[]management[]] systems special fund for
 
 2           each fiscal year shall be limited to amounts
 
 3           appropriated by the legislature.  This paragraph shall
 
 4           be repealed on July 1, 2004[.]; and
 
 5      (4)  A sum, equal to the difference between the rate imposed
 
 6           under section 237-16(b)(2) and four per cent shall be
 
 7           deposited in the fireworks assistance special fund
 
 8           under section 346-   ."
 
 9      SECTION 4.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 5.  This Act shall take effect on July 1, 2000.
 
12 
 
13                           INTRODUCED BY:  _______________________