Report Title:

Tax Administration; Technical Corrections 2008

Description:

Clarifies that the general excise tax exemption for building and repair costs of a surface vessel also applies to subsurface vessels.  (SD1)

THE SENATE	S.B. NO.	3114
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO REVENUE AUTHORITIES ADMINISTERED BY THE GOVERNMENT.

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

     SECTION 1.  The purpose of this Act is to make a technical addition to the general excise tax exemption provision for surface vessels in chapter 237, Hawaii Revised Statutes.  The technical addition will improve the administration of Hawaii taxes and other revenue authorities.  That technical amendment is intended to clarify and simplify Hawaii tax law.

     SECTION 2.  Section 237-28.1, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§237-28.1[]]  Exemption of certain shipbuilding and ship repair business.  There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds arising from shipbuilding and ship repairs rendered to surface and subsurface vessels federally owned or engaged in interstate or international trade."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval; provided that section 2 of this Act shall apply to gross proceeds or gross income received on or after January 1, 2009.