Provides a GET exemption to small businesses that derives at least 85% of their business from exports.

A BILL FOR AN ACT

SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237- Small business exemption for exported products. (a) Notwithstanding any law to the contrary, there shall be exempted from the measure of the taxes imposed by this chapter, that portion of the gross proceeds derived by a small business that is attributable to income received from the sale of personal property or services sold in the State; provided that at least eighty-five per cent of the total gross proceeds of the small business is attributable to income received from the sale of personal property and services exported out of the State.

(b) For the purposes of this section, the term "small business" means a for-profit enterprise consisting of fewer than twenty-five full-time or part-time employees and receiving gross income of not more than $500,000 in any taxable year."

SECTION 2. The department of taxation shall provide the following information:

in a report to be submitted to the legislature not later than twenty days prior to the convening of the regular session 2008.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2005; provided that section 1 of this Act shall be repealed on December 31, 2008.