THE SENATE	S.B. NO.	2185
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

relating to fireworks.

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

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

"§237-   Consumer fireworks tax. (a) There is hereby levied and shall be assessed and collected with each transaction, in addition to any other tax imposed under this chapter and license or fee imposed under chapter 132D, a consumer fireworks tax against retailers and wholesalers, as defined in section 237-4(a)(1), of consumer fireworks, as defined in section 132D-2, measured by the application of rates against the gross proceeds of sales as provided in subsection (b). For the purposes of this section, "retailer" means a person that engages in the practice of selling consumer fireworks, as defined in section 132D-2, to consumers.

(b) Upon every person engaged in the sales of consumer fireworks to consumers or at wholesale to a retail merchant, jobber, or other licensed seller for purposes of resale consumer fireworks, there shall be levied, assessed, and collected a consumer fireworks tax equal to the value of the consumer fireworks, as shown by the gross proceeds derived from the sale thereof by the retailer or wholesaler, multiplied by ten per cent.

(c) Beginning January 1, 2023, the consumer fireworks tax shall be paid to the State, in the same manner as the return for the general excise tax under section 237-30(b)(1), in quarterly installments on or before the last day of the calendar month after the close of each quarter in which the taxes accrue, and shall be paid by transmitting the signed return together with the remittance in the manner provided in section 237-31. Annual return and payment of tax under section 237-33 shall apply to this section.

(d) Audits, procedures, and penalties under sections 237‑39 and 237-32 shall apply to this section.

(e) All remittances of taxes imposed by this section shall be deposited into the state treasury as a state realization; provided that       per cent of remittances under this section shall be set aside in a separate account to be drawn upon, without appropriation by the legislature, by the department of the attorney general and the department of taxation for implementation and enforcement of this section; provided further that the department of the attorney general and the department of taxation shall coordinate implementation and enforcement so as to minimize duplication of services; provided further that the department of the attorney general and the department of taxation shall report to the legislature prior to the convening of each regular session on the expenses paid from the separate account in the year immediately preceding the report."

SECTION 2. Section 132D-11, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The fee for the license required under section 132D-7 shall be $3,000 for importers, $2,000 for each wholesaler's site, $1,000 for each storage site, and $500 for each retailer's site for each year or fraction of a year in which the licensee plans to conduct business and shall be payable to the county. The license fees shall be used solely by each county fire department to pay for the salary of an auditor of fireworks and articles pyrotechnic records and all expenses incurred to fulfill the duties required, including the inspection of inventory and storage facilities, maintenance of required records, and the training of the auditor. The auditor shall monitor strict inventory and recordkeeping requirements to ensure that sales of fireworks or articles pyrotechnic are made only to license or permit holders under this chapter. The auditor shall submit an annual report detailing inventory, recordkeeping, and sales of fireworks to license or permit holders to the legislature. The county shall provide an exemption from the fees under this section to nonprofit community groups for importation and storage of fireworks or articles pyrotechnic for displays once a year."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2022.

INTRODUCED BY:

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Report Title:

Fireworks; Tax; Audit; County Fire Departments; Annual Report

Description:

Imposes a consumer fireworks tax at the wholesale and retail levels. Requires the Auditor of fireworks and articles pyrotechnic records of each county fire department to submit an annual report detailing inventory, recordkeeping, and sales of fireworks to license or permit holders to the Legislature.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.