Bill Text: HI SB2618 | 2012 | Regular Session | Introduced
Bill Title: General Excise Tax; Repeal Act 105
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-23 - (S) Referred to WAM. [SB2618 Detail]
Download: Hawaii-2012-SB2618-Introduced.html
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THE SENATE |
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2618 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the repeal of act 105, session laws of hawaii 2011.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Act 105, Session Laws of Hawaii 2011 was intended to address the State's general fund budget shortfall. Act 105 called for the temporary suspension of the general excise and use tax exemptions in specific circumstances. The suspension of exemptions and imposition of the tax commenced on July 1, 2011, and is scheduled to end on June 30, 2013.
The legislature finds that Act 105, and its combined pyramiding effect in many industries, has hindered economic development in Hawaii and has increased and pyramided costs relating to contractors, materials and products related to agriculture, construction, residential and affordable housing, construction, tourism, airlines, commercial and industries, high technology research and development grants, and enterprise zone businesses and construction.
Negative effects of Act 105 have included, but are not limited to, higher airline costs, added shipping surcharges, new costs for sub contractors and sub lessees, and burdens upon non-profit entities. Additionally, previously tax-excluded utility, maintenance and other separated cost items of condominium associations have been subjected to the General Excise Tax on Oahu pursuant to Act 105.
During the legislative process, concerns were publicly raised about the effects of the bill. Dozens of citizens opposed the changes to the General Excise Tax, and many noted that a burden was being placed back upon the people of Hawaii while the government continued without change. Despite these concerns, the legislature passed Act 105, Session Laws of Hawaii 2011 into law. Act 105 has increased the cost of living of the people of Hawaii and the cost of doing business within our State. The legislature notes that the people who are struggling to meet their expenses, and the businesses that are trying to get by in this touch economic climate, have been severely harmed by this Act.
In light of the continuing negative effects of this law, the legislature finds that it is in the best interests of the State to repeal Act 105, Session Laws of Hawaii 2011.
SECTION 2. Act 105, Session Laws of Hawaii 2011, is repealed.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
General Excise Tax; Repeal Act 105
Description:
Repeals Act 105, Session Laws of Hawaii 2011.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
