Report Title:
Tobacco Tax; Consumer Price Index
Description:
Adjusts the tobacco tax rate in accordance with increases or decreases in the Consumer Price Index for the Honolulu region.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1601 |
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TWENTY-FIRST LEGISLATURE, 2001 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the tobacco tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 245-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Every wholesaler or dealer, in addition to any other taxes provided by law, shall pay for the privilege of conducting business and other activities in the State:
(1) An excise tax equal to 5.00 cents for each cigarette sold, used, or, possessed by a wholesaler or dealer after June 30, 1998, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer; provided that beginning January 1, 2002, this rate shall thereafter be adjusted annually to correspond with any increases in the Consumer Price Index for the Honolulu region prepared by the Bureau of Labor Statistics of the United States Department of Labor which have occurred in the last twelve months ending December 31 of the preceding year. Notice of the adjusted rate shall be announced:
(A) By notice published statewide pursuant to section 1-28.5(a)(1);
(B) By gubernatorial proclamation; and
(C) On the department of taxation's internet website; and
(2) An excise tax equal to forty per cent of the wholesale price of each article or item of tobacco products sold by the wholesaler or dealer, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer.
Where the tax imposed has been paid on cigarettes or tobacco products which thereafter become the subject of a casualty loss deduction allowable under chapter 235, the tax paid shall be refunded or credited to the account of the wholesaler or dealer. The tax shall be applied to cigarettes through the use of stamps."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval; provided that the amendments made to section 245-3, Hawaii Revised Statutes, by section 1 of this Act shall not be repealed when that section is reenacted on June 30, 2006, pursuant to section 20(2) of Act 249, Session Laws of Hawaii 2000.
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INTRODUCED BY: |
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