Imposes the general excise tax on owner-builders on the value of the building of their own personal residence.

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-   Imposition of tax; owner-builders. (a) In addition to the tax imposed under section 237-13, there is hereby levied and shall be assessed and collected a general excise tax on owner-builders on the value of construction, renovation, or alteration of the owner-builder's personal residence that is the subject of a building permit.

(b) The tax under subsection (a) shall be imposed against the value of the work as noted on the building permit; provided that the value of work performed by duly licensed subcontractors shall be deducted from the value of the work as noted on the building permit. This subsection shall not affect the subcontractor's obligation to pay the general excise tax assessed on the subcontractor under this chapter.

(c) The tax under this section shall be collected by the county office issuing the building permit as a condition precedent to issuing the permit. The county shall transfer the moneys collected to the department of taxation."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2005, and shall apply to building permits issued on or after September 1, 2005.