REPORT TITLE:
Taxation; GET


DESCRIPTION:
Classifies sales of goods and services from business to business
as wholesale sales.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1202
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO TAXATION.



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

 1      SECTION 1.  Section 237-1, Hawaii Revised Statutes, is
 
 2 amended by adding two new definitions to be appropriately
 
 3 inserted and to read as follows:
 
 4      ""Active trade or business" means a licensed trade or
 
 5 business which incurs ordinary and necessary expenses in carrying
 
 6 on a trade or business and is subject to the criteria of Internal
 
 7 Revenue Code section 162.
 
 8      "Overhead" means continuous or general costs of property or
 
 9 services which are not specifically or directly associated with
 
10 the manufacture, preparation, production, or acquisition of
 
11 identifiable goods or services to be sold."
 
12      SECTION 2.  Section 237-4, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§237-4 "Wholesaler", "jobber", defined."Wholesaler" or
 
15 "jobber" applies only to a person making sales at wholesale.
 
16 Only the following are sales at wholesale:
 
17      (1)  Sales to a licensed retail merchant, jobber, or other
 
18           licensed seller for purposes of resale;
 
19      (2)  Sales to a licensed manufacturer of material or
 

 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1           commodities which are to be incorporated by the
 
 2           manufacturer into a finished or saleable product
 
 3           (including the container or package in which the
 
 4           product is contained) during the course of its
 
 5           preservation, manufacture, or processing, including
 
 6           preparation for market, and which will remain in such
 
 7           finished or saleable product in such form as to be
 
 8           perceptible to the senses, which finished or saleable 
 
 9 product is to be sold and not otherwise used by the manufacturer;
 
10      (3)  Sales to a licensed producer or cooperative association
 
11           of materials or commodities which are to be
 
12           incorporated by the producer or by the cooperative
 
13           association into a finished or saleable product which
 
14           is to be sold and not otherwise used by the producer or
 
15           cooperative association, including specifically
 
16           materials or commodities expended as essential to the
 
17           planting, growth, nurturing, and production of
 
18           commodities which are sold by the producer or by the
 
19           cooperative association;
 
20      (4)  Sales to a licensed contractor, of material or
 
21           commodities which are to be incorporated by the
 
22           contractor into the finished work or project required
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1           by the contract and which will remain in such finished
 
 2           work or project in such form as to be perceptible to
 
 3           the senses;
 
 4      (5)  Sales to a licensed producer, or to a cooperative
 
 5           association described in section 237-23(a)(7) for sale
 
 6           to such producer, or to a licensed person operating a
 
 7           feed lot, of poultry or animal feed, hatching eggs,
 
 8           semen, replacement stock, breeding services for the
 
 9           purpose of raising or producing animal or poultry
 
10           products for disposition as described in section 237-5
 
11           or to be incorporated in a manufactured product as
 
12           described in paragraph (2) or for the purpose of
 
13           breeding, hatching, milking, or egg laying other than
 
14           for the customer's own consumption of the meat,
 
15           poultry, eggs, or milk so produced; provided that in
 
16           the case of a feed lot operator, only the segregated
 
17           cost of the feed furnished by the feed lot operator as
 
18           part of the feed lot operator's service to a licensed
 
19           producer of poultry or animals to be butchered or to a
 
20           cooperative association described in section
 
21           237-23(a)(7) of such licensed producers shall be deemed
 
22           to be a sale at wholesale; and provided further that
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1           any amount derived from the furnishing of feed lot
 
 2           services, other than the segregated cost of feed, shall
 
 3           be deemed taxable at the service business rate.  This
 
 4           paragraph shall not apply to the sale of feed for
 
 5           poultry or animals to be used for hauling,
 
 6           transportation, or sports purposes;
 
 7      (6)  Sales to a licensed producer, or to a cooperative
 
 8           association described in section 237-23(a)(7) for sale
 
 9           to the producer, of seed for producing agricultural
 
10           products, or bait for catching fish (including the
 
11           catching of bait for catching fish), which agricultural
 
12           products or fish are to be disposed of as described in
 
13           section 237-5 or to be incorporated in a manufactured
 
14           product as described in paragraph (2);
 
15      (7)  Sales to a licensed producer, or to a cooperative
 
16           association described in section 237-23(a)(7) for sale
 
17           to such producer; of polypropylene shade cloth; of
 
18           polyfilm; of polyethylene film; of cartons and such
 
19           other containers, wrappers, and sacks, and binders to
 
20           be used for packaging eggs, vegetables, fruits, and
 
21           other agricultural products; of seedlings and cuttings
 
22           for producing nursery plants; or of chick containers;
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1           which cartons and such other containers, wrappers, and
 
 2           sacks, binders, seedlings, cuttings, and containers are
 
 3           to be used as described in section 237-5, or to be
 
 4           incorporated in a manufactured product as described in
 
 5           paragraph (2);
 
 6      (8)  Sales of tangible personal property to a licensed
 
 7           person engaged in the service business; provided that
 
 8           (A) the property is not consumed or incidental to the
 
 9           performance of the services; (B) there is a resale of
 
10           the article at the retail rate of four per cent; and
 
11           (C) the resale of the article is separately charged or
 
12           billed by the person rendering the services;
 
13      (9)  Sales to a licensed leasing company of capital goods
 
14           which are thereafter leased as a service to others.
 
15           Capital goods means goods which have a depreciable life
 
16           and which are purchased by the leasing company for
 
17           lease to its customers[.]; and
 
18     (10)  Sales of services to a licensed seller engaged in an
 
19           active trade or business, whether consumed by the
 
20           licensed seller as overhead or resold for the purpose
 
21           of rendering another service in the course of the
 
22           seller's service business or calling or for the purpose
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

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

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1      SECTION 3.  Section 237-13, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§237-13  Imposition of tax.  There is hereby levied and
 
 4 shall be assessed and collected annually privilege taxes against
 
 5 persons on account of their business and other activities in the
 
 6 State measured by the application of rates against values of
 
 7 products, gross proceeds of sales, or gross income, whichever is
 
 8 specified, as follows:
 
 9      (1)  Tax on manufacturers.
 
10           (A)  Upon every person engaging or continuing within
 
11                the State in the business of manufacturing,
 
12                including compounding, canning, preserving,
 
13                packing, printing, publishing, milling,
 
14                processing, refining, or preparing for sale,
 
15                profit, or commercial use, either directly or
 
16                through the activity of others, in whole or in
 
17                part, any article or articles, substance or
 
18                substances, commodity or commodities, the amount
 
19                of the tax to be equal to the value of the
 
20                articles, substances, or commodities,
 
21                manufactured, compounded, canned, preserved,
 
22                packed, printed, milled, processed, refined, or
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                prepared, for sale, as shown by the gross proceeds
 
 2                derived from the sale thereof by the manufacturer
 
 3                or person compounding, preparing, or printing
 
 4                them, multiplied by one-half of one per cent.
 
 5           (B)  The measure of the tax on manufacturers is the
 
 6                value of the entire product for sale, regardless
 
 7                of the place of sale or the fact that deliveries
 
 8                may be made to points outside the State.
 
 9           (C)  If any person liable for the tax on manufacturers
 
10                ships or transports the person's product, or any
 
11                part thereof, out of the State, whether in a
 
12                finished or unfinished condition, or sells the
 
13                same for delivery outside of the State (for
 
14                example, consigned to a mainland purchaser via
 
15                common carrier f.o.b. Honolulu), the value of the
 
16                products in the condition or form in which they
 
17                exist immediately before entering interstate or
 
18                foreign commerce, determined as hereinafter
 
19                provided, shall be the basis for the assessment of
 
20                the tax imposed by this paragraph.  This tax shall
 
21                be due and payable as of the date of entry of the
 
22                products into interstate or foreign commerce,
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                whether the products are then sold or not.  The
 
 2                department of taxation shall determine the basis
 
 3                for assessment, as provided by this paragraph, as
 
 4                follows:
 
 5                (i)  If the products at the time of their entry
 
 6                     into interstate or foreign commerce already
 
 7                     have been sold, the gross proceeds of sale,
 
 8                     less the transportation expenses, if any,
 
 9                     incurred in realizing the gross proceeds for
 
10                     transportation from the time of entry of the
 
11                     products into interstate or foreign commerce,
 
12                     including insurance and storage in transit,
 
13                     shall be the measure of the value of the
 
14                     products.
 
15               (ii)  If the products have not been sold at the
 
16                     time of their entry into interstate or
 
17                     foreign commerce, and in cases governed by
 
18                     clause (i) in which the products are sold
 
19                     under circumstances such that the gross
 
20                     proceeds of sale are not indicative of the
 
21                     true value of the products, the value of the
 
22                     products constituting the basis for
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                     assessment shall correspond as nearly as
 
 2                     possible to the gross proceeds of sales for
 
 3                     delivery outside the State, adjusted as
 
 4                     provided in clause (i), or if sufficient data
 
 5                     are not available, sales in the State, of
 
 6                     similar products of like quality and
 
 7                     character and in similar quantities, made by
 
 8                     the taxpayer (unless not indicative of the
 
 9                     true value) or by others.  Sales outside the
 
10                     State, adjusted as provided in clause (i),
 
11                     may be considered when they constitute the
 
12                     best available data.  The department shall
 
13                     prescribe uniform and equitable rules for
 
14                     ascertaining the values.
 
15              (iii)  At the election of the taxpayer and with the
 
16                     approval of the department, the taxpayer may
 
17                     make the taxpayer's returns under clause (i)
 
18                     even though the products have not been sold
 
19                     at the time of their entry into interstate or
 
20                     foreign commerce.
 
21               (iv)  In all cases in which products leave the
 
22                     State in an unfinished condition, the basis
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                     for assessment shall be adjusted so as to
 
 2                     deduct the portion of the value as is
 
 3                     attributable to the finishing of the goods
 
 4                     outside the State.
 
 5      (2)  Tax on business of selling tangible personal property;
 
 6           producing.
 
 7           (A)  Upon every person engaging or continuing in the
 
 8                business of selling any tangible personal property
 
 9                whatsoever (not including, however, bonds or other
 
10                evidence of indebtedness, or stocks), there is
 
11                likewise hereby levied, and shall be assessed and
 
12                collected, a tax equivalent to four per cent of
 
13                the gross proceeds of sales of the business;
 
14                provided that insofar as certain retailing is
 
15                taxed by section 237-16, the tax shall be that
 
16                levied by section 237-16, and in the case of a
 
17                wholesaler, the tax shall be equal to one-half of
 
18                one per cent of the gross proceeds of sales of the
 
19                business.  Upon every person engaging or
 
20                continuing within this State in the business of a
 
21                producer, the tax shall be equal to one-half of
 
22                one per cent of the gross proceeds of sales of the
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                business, or the value of the products, for sale,
 
 2                if sold for delivery outside the State or shipped
 
 3                or transported out of the State, and the value of
 
 4                the products shall be determined in the same
 
 5                manner as the value of manufactured products
 
 6                covered in the cases under paragraph (1)(C).
 
 7           (B)  Gross proceeds of sales of tangible property in
 
 8                interstate and foreign commerce shall constitute a
 
 9                part of the measure of the tax imposed on persons
 
10                in the business of selling tangible personal
 
11                property, to the extent, under the conditions, and
 
12                in accordance with the provisions of the
 
13                Constitution of the United States and the Acts of
 
14                the Congress of the United States which may be now
 
15                in force or may be hereafter adopted, and whenever
 
16                there occurs in the State an activity to which,
 
17                under the Constitution and Acts of Congress, there
 
18                may be attributed gross proceeds of sales, the
 
19                gross proceeds shall be so attributed.
 
20           (C)  No manufacturer or producer, engaged in such
 
21                business in the State and selling the
 
22                manufacturer's or producer's products for delivery
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                outside of the State (for example, consigned to a
 
 2                mainland purchaser via common carrier f.o.b.
 
 3                Honolulu), shall be required to pay the tax
 
 4                imposed in this chapter for the privilege of so
 
 5                selling the products, and the value or gross
 
 6                proceeds of sales of the products shall be
 
 7                included only in determining the measure of the
 
 8                tax imposed upon the manufacturer or producer.
 
 9           (D)  When a manufacturer or producer, engaged in such
 
10                business in the State, also is engaged in selling
 
11                the manufacturer's or producer's products in the
 
12                State at wholesale, retail, or in any other
 
13                manner, the tax for the privilege of engaging in
 
14                the business of selling the products in the State
 
15                shall apply to the manufacturer or producer as
 
16                well as the tax for the privilege of manufacturing
 
17                or producing in the State, and the manufacturer or
 
18                producer shall make the returns of the gross
 
19                proceeds of the wholesale, retail, or other sales
 
20                required for the privilege of selling in the
 
21                State, as well as making the returns of the value
 
22                or gross proceeds of sales of the products
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                required for the privilege of manufacturing or
 
 2                producing in the State.  The manufacturer or
 
 3                producer shall pay the tax imposed in this chapter
 
 4                for the privilege of selling its products in the
 
 5                State, and the value or gross proceeds of sales of
 
 6                the products, thus subjected to tax, may be
 
 7                deducted insofar as duplicated as to the same
 
 8                products by the measure of the tax upon the
 
 9                manufacturer or producer for the privilege of
 
10                manufacturing or producing in the State; except
 
11                that no producer of agricultural products who
 
12                sells the products to a purchaser who will process
 
13                the products outside the State shall be required
 
14                to pay the tax imposed in this chapter for the
 
15                privilege of producing or selling those products.
 
16           (E)  A taxpayer selling to a federal cost-plus
 
17                contractor may make the election provided for by
 
18                paragraph (3)(C), and in that case the tax shall
 
19                be computed pursuant to the election,
 
20                notwithstanding this paragraph or paragraph (1) to
 
21                the contrary.
 
22           (F)  The department, by rule, may provide that a seller
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                may take from the purchaser of tangible personal
 
 2                property a certificate, in a form as the
 
 3                department shall prescribe, certifying that the
 
 4                sale is a sale at wholesale.  If the certificate
 
 5                is so provided for by rule of the department:
 
 6                (i)  Any purchaser who furnishes a certificate
 
 7                     shall be obligated to pay to the seller, upon
 
 8                     demand, if the sale in fact is not at
 
 9                     wholesale, the amount of the additional tax
 
10                     which by reason thereof is imposed upon the
 
11                     seller; and
 
12               (ii)  The absence of a certificate, unless the
 
13                     sales of the business are exclusively at
 
14                     wholesale, in itself shall give rise to the
 
15                     presumption that the sale is not at
 
16                     wholesale.
 
17      (3)  Tax upon contractors.
 
18           (A)  Upon every person engaging or continuing within
 
19                the State in the business of contracting, the tax
 
20                shall be equal to four per cent of the gross
 
21                income of the business; provided that insofar as
 
22                the business of contracting is taxed by section
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                237-16, which relates to certain retailing, the
 
 2                tax shall be that levied by section 237-16.
 
 3           (B)  In computing the tax levied under this paragraph
 
 4                or section 237-16, there shall be deducted from
 
 5                the gross income of the taxpayer so much thereof
 
 6                as has been included in the measure of the tax
 
 7                levied under subparagraph (A) or section 237-16,
 
 8                on:
 
 9                (i)  Another taxpayer who is a contractor, as
 
10                     defined in section 237-6;
 
11               (ii)  A specialty contractor, duly licensed by the
 
12                     department of commerce and consumer affairs
 
13                     pursuant to section 444-9, in respect of the
 
14                     specialty contractor's business; or
 
15              (iii)  A specialty contractor who is not licensed by
 
16                     the department of commerce and consumer
 
17                     affairs pursuant to section 444-9, but who
 
18                     performs contracting activities on federal
 
19                     military installations and nowhere else in
 
20                     this State;
 
21                but any person claiming a deduction under this
 
22                paragraph shall be required to show in the
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                person's return the name and general excise number
 
 2                of the person paying the tax on the amount
 
 3                deducted by the person.
 
 4           (C)  In computing the tax levied under this paragraph
 
 5                against any federal cost-plus contractor, there
 
 6                shall be excluded from the gross income of the
 
 7                contractor so much thereof as fulfills the
 
 8                following requirements:
 
 9                (i)  The gross income exempted shall constitute
 
10                     reimbursement of costs incurred for
 
11                     materials, plant, or equipment purchased from
 
12                     a taxpayer licensed under this chapter, not
 
13                     exceeding the gross proceeds of sale of the
 
14                     taxpayer on account of the transaction; and
 
15               (ii)  The taxpayer making the sale shall have
 
16                     certified to the department that the taxpayer
 
17                     is taxable with respect to the gross proceeds
 
18                     of the sale, and that the taxpayer elects to
 
19                     have the tax on gross income computed the
 
20                     same as upon a sale to the state government.
 
21           (D)  A person who, as a business or as a part of a
 
22                business in which the person is engaged, erects,
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                constructs, or improves any building or structure,
 
 2                of any kind or description, or makes, constructs,
 
 3                or improves any road, street, sidewalk, sewer, or
 
 4                water system, or other improvements on land held
 
 5                by the person (whether held as a leasehold, fee
 
 6                simple, or otherwise), upon the sale or other
 
 7                disposition of the land or improvements, even if
 
 8                the work was not done pursuant to a contract,
 
 9                shall be liable to the same tax as if engaged in
 
10                the business of contracting, unless the person
 
11                shows that at the time the person was engaged in
 
12                making the improvements it was, and for the period
 
13                of at least one year after completion of the
 
14                building, structure, or other improvements, it
 
15                continued to be the person's purpose to hold and
 
16                not sell or otherwise dispose of the land or
 
17                improvements.  The tax in respect of the
 
18                improvements shall be measured by the amount of
 
19                the proceeds of the sale or other disposition that
 
20                is attributable to the erection, construction, or
 
21                improvement of such building or structure, or the
 
22                making, constructing, or improving of the road,
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1                street, sidewalk, sewer, or water system, or other
 
 2                improvements.  The measure of tax in respect of
 
 3                the improvements shall not exceed the amount which
 
 4                would have been taxable had the work been
 
 5                performed by another, subject as in other cases to
 
 6                the deductions allowed by subparagraph (B).  Upon
 
 7                the election of the taxpayer, this paragraph may
 
 8                be applied notwithstanding the improvements were
 
 9                not made by the taxpayer, or were not made as a
 
10                business or as a part of a business, or were made
 
11                with the intention of holding the same.  However,
 
12                this paragraph shall not apply in respect of any
 
13                proceeds that constitute or are in the nature of
 
14                rent; all such gross income shall be taxable under
 
15                paragraph (10); provided that insofar as the
 
16                business of renting or leasing real property under
 
17                a lease is taxed under section 237-16.5, the tax
 
18                shall be levied by section 237-16.5.
 
19      (4)  Tax upon theaters, amusements, radio broadcasting
 
20           stations, etc.  Upon every person engaging or
 
21           continuing within the State in the business of
 
22           operating a theater, opera house, moving picture show,
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

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

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

 
 1           upon the order of or at the request of another licensed
 
 2           taxpayer who is engaged in [the service] an active
 
 3           trade or business [and who, in fact, acts as or acts in
 
 4           the nature of an intermediary between the person
 
 5           rendering those services and the ultimate recipient of
 
 6           the benefits of those services], and the cost of the
 
 7           services rendered constitute overhead of the active
 
 8           trade or business or is resold to customers as direct
 
 9           or indirect labor in the delivery of a product or
 
10           service by the active trade or business, so much of the
 
11           gross income as is received by the person rendering the
 
12           services shall be subjected to the tax at the rate of
 
13           one-half of one per cent [and all of the gross income
 
14           received by the intermediary from the principal shall
 
15           be subjected to a tax at the rate of four per cent];
 
16           and provided that where any person is engaged in the
 
17           business of selling interstate or foreign common
 
18           carrier telecommunication services within and without
 
19           the State, the tax shall be imposed on that portion of
 
20           gross income received by a person from service which is
 
21           originated or terminated in this State and is charged
 
22           to a telephone number, customer, or account in this
 

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

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

 
 
 
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                                     S.B. NO.           1202
                                                        
                                                        

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

 
 
 
Page 24                                                    
                                     S.B. NO.           1202
                                                        
                                                        

 
 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 4.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 5.  This Act shall take effect on July 1, 1999.
 
15 
 
16                              INTRODUCED BY:______________________