Bill Text: HI HB183 | 2012 | Regular Session | Introduced
Bill Title: General Excise Tax Exemption; Small Business Manufacturing
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB183 Detail]
Download: Hawaii-2012-HB183-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
183 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to general excise taxation.
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‑ Exemption; small business manufacturing. (a) This chapter shall not apply to any qualified small business engaged in the business of manufacturing. The gross proceeds of sales of any product manufactured by any qualified small business shall be exempt from the tax imposed by this chapter for a maximum period of five years.
(b) For the purposes of this section:
"Manufacturing" means the producing, preparation, propagation, or processing of a product either directly or indirectly from substances of natural origin and does not include packaging and labeling, or repackaging or relabelinq of the product unless packaging or labeling is completed by the original manufacturers of the product.
"Qualified small business" means a small business that:
(1) Employs at least three employees who earn salaries or wages that fall within middle income levels as defined by the department of business, economic development, and tourism;
(2) Meets the criteria established by the department of business, economic development, and tourism in rules adopted under chapter 91 defining small business; and
(3) Has been issued a certificate of tax clearance from the department of taxation verifying that the small business has filed all required returns and paid all required taxes, penalties, and interest for the taxable year the exemption is claimed.
(c) The director of taxation shall adopt rules in accordance with chapter 91 to implement this section."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on January 1, 2012.
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INTRODUCED BY: |
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Report Title:
General Excise Tax Exemption; Small Business Manufacturing
Description:
Exempts for maximum of 5 years from the general excise tax the gross proceeds of any qualified small business manufacturer.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
