Report Title:

General Excise Tax; Health Care Service; Medical Equipment

Description:

Exempts medical services and equipment from the general excise tax.

HOUSE OF REPRESENTATIVES

H.B. NO.

2106

TWENTY-THIRD LEGISLATURE, 2006

  

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:

SECTION 1. The legislature understands that health care is critically important to everyone in Hawaii, and that the general excise tax on health care has a disproportionate impact on the poor. Furthermore, health care costs are increasing faster than the inflation rate of the overall economy, and the general excise tax is one of the factors contributing to high health care costs.

The purpose of this Act is to exempt medical services and equipment from the general excise tax.

SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237-   Exemption for health care services and medical equipment. (a) In addition to the amounts not taxable under section 237-24, this chapter shall not apply to amounts received from the provision of health care services or medical equipment.

(b) For purposes of this section, "health care services" means services involved in the diagnosis, cure, mitigation, treatment, or prevention of disease or the promotion of wellness of body when provided by the following:

(1) Nonprofit or for-profit hospitals;

(2) Surgical outpatient facilities;

(3) Dialysis facilities;

(4) Infirmaries;

(5) Skilled nursing facilities;

(6) Intermediate care facilities;

(7) Adult residential care homes;

(8) Adult foster homes;

(9) Adult day care facilities;

(10) Assisted living facilities;

(11) Pharmacies;

(12) Sanitariums;

(13) Surface and air ambulances; or

(14) Persons holding a valid license under chapters 442, 447, 448, 451A, 452, 453, 455, 457, 457A, 457G, 458, 459, 460, 461, 461J, 463E, 465, 466J, or 468E.

(c) As used in this section, "medical equipment" means any device, instrument, appliance, apparatus, or contrivance, electronic, mechanical, or otherwise, that is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or the promotion of wellness of body when provided by one of the providers listed in subsection (b)."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2007.

INTRODUCED BY:

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