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HB1335
HOUSE OF REPRESENTATIVES
H.B. NO.
1335
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to taxation
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
����
SECTION 1.
�
Chapter 237, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:
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"
�237-
�
Exemption
for diapers.
�
(a)
�
There shall be exempted from, and excluded from the measure of, the
taxes imposed by this chapter all the gross proceeds or income arising from the
manufacture, production, packaging, and sale of diapers within the State.
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(b)
�
As
used in this section, "diaper" means an absorbent garment that:
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(1)
�
Is washable or
disposable; and
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(2)
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If
disposable:
���������
(A)
�
Does
not use any latex or common allergens; and
���������
(B)
�
Meets
or exceeds the quality standards for diapers commercially available through
retail sale in the following categories:
�������������
(i)
�
Absorbency
(with acceptable rates for first and second wetting);
������������
(ii)
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Waterproof
outer cover;
�����������
(iii)
�
Flexible
leg openings; and
������������
(iv)
�
Refastening
closures.
"
PART II
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SECTION 2.
�
Chapter 237, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:
����
"
�237-
�
Luxury motor vehicles; surcharge.
�
(a)
�
In addition to the tax imposed by section
237-13 or any other provision in this chapter, there is levied and shall be
assessed and collected a surcharge on the gross proceeds of sales of luxury
motor vehicles.
�
Upon every sale of a
luxury motor vehicle, regardless of whether the vehicle is new or used, the
amount of the surcharge shall be equal to fifty per cent of the sum of all
applicable taxes imposed under this chapter on the gross proceeds of sales of
luxury motor vehicles.
�
All
provisions of this chapter shall apply to the surcharge.
�
With respect to the surcharge, the director of
taxation shall have all the rights and powers provided under this chapter.
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(b)
�
The surcharge shall be imposed on the gross proceeds or gross income of
all written contracts that require the passing on of the taxes imposed under
this chapter; provided that if the gross proceeds or gross income are received
as payments beginning in the taxable year in which the taxes become effective,
on contracts entered into before June 30 of the year before the taxable year in
which the taxes become effective, and the written contracts do not provide for
the passing on of increased rates of taxes, the surcharge shall not be imposed
on the gross proceeds or gross income covered under the written contracts.
�
The surcharge shall be imposed on the gross
proceeds or gross income from all contracts entered into on or after June 30
of the year before the taxable year in which the taxes become effective,
regardless of whether the contract allows for the passing on of any tax or any
tax increases.
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(c)
�
No surcharge under this section shall be established on any:
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(1)
�
Gross income or gross proceeds taxable
under this chapter at the one-half per cent tax rate;
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(2)
�
Gross income or gross proceeds taxable
under this chapter at the 0.15 per cent tax rate; or
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(3)
�
Transactions, amounts, persons, gross
income, or gross proceeds exempt from tax under this chapter.
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(d)
�
The director of taxation shall revise the general excise tax forms to
provide for the clear and separate designation of the imposition and payment of
the surcharge.
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(e)
�
All taxpayers who file on a fiscal year basis whose fiscal year ends
after December 31 of the year before the taxable year in which the taxes become
effective, shall file a short period annual return for the period preceding
January 1 of the taxable year in which the taxes become effective.
�
Each fiscal year taxpayer shall also file a
short period annual return for the period starting on January 1 of the taxable
year in which the taxes become effective, and ending before January 1 of the
following year.
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(f)
�
For the purposes of this section:
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"Authorized emergency vehicle"
has the same meaning as in section 291C-1.
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"Luxury motor vehicle" means a
motor vehicle where the published manufacturer's suggested retail price, at the
time of initial sale, is
$ or more.
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"Luxury motor vehicle" does not
include:
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(1)
�
Trucks or vans capable of carrying more
than two tons;
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(2)
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Motorhomes and campervans;
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(3)
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Authorized emergency vehicles; and
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(4)
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Vehicles specifically fitted for
transporting passengers with a disability.
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"Motor vehicle" has the same
meaning as in section 286-2.
"
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SECTION
3.
�
Chapter 238, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:
����
"
�238-
�
Luxury motor vehicles; surcharge.
�
(a)
�
In addition to the tax imposed by section 238-2
or any other provision in this chapter, there is levied and shall be assessed
and collected a surcharge on the value of luxury motor vehicles taxable under
this chapter.
�
Upon importation into the
State, regardless of whether the vehicle is new or used, the amount of the
surcharge shall be equal to fifty per cent of the sum of all applicable taxes
imposed on the value of luxury vehicles under this chapter.
�
All provisions of this chapter
shall apply to the surcharge.
�
With
respect to the surcharge, the director of taxation shall have all the rights
and powers provided under this chapter.
����
(b)
�
No surcharge under this section shall be established upon any use
taxable under this chapter at the one-half per cent tax rate or upon any use
that is not subject to taxation or that is exempt from taxation under this
chapter.
����
(c)
�
The director of taxation shall revise the use tax forms to provide for
the clear and separate designation of the imposition and payment of the
surcharge.
����
(d)
�
All taxpayers who file on a fiscal year basis whose fiscal year ends
after December 31 of the year before the taxable year in which the taxes become
effective, shall file a short period annual return for the period preceding
January 1 of the taxable year in which the taxes become effective.
�
Each fiscal year taxpayer shall also file a
short period annual return for the period starting on January 1 of the taxable
year in which the taxes become effective, and ending before January 1 of the
following year.
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(e)
�
For the purposes of this section:
����
"Authorized emergency vehicle"
has the same meaning as in section 291C-1.
����
"Luxury motor vehicle" means a
motor vehicle where the published manufacturer's suggested retail price, at the
time of initial sale, is
$ or more.
�
"Luxury motor vehicle" does not
include:
����
(1)
�
Trucks or vans capable of carrying more
than two tons;
����
(2)
�
Motorhomes and campervans;
����
(3)
�
Authorized emergency vehicles; and
����
(4)
�
Vehicles specifically fitted out for
transporting passengers with a disability.
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"Motor vehicle" has the same
meaning as in section 286-2.
"
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SECTION
4
.
�
Section 286-41, Hawaii Revised Statutes, is
amended by amending subsection (d) to read as follows:
����
"(d)
�
The owner of every motor vehicle of the
current, previous, and subsequent year model bought out-of-state, subsequently
brought into the State, and subject to the use tax under chapter 238 shall
provide with the application for registration proof of payment of the use tax
,
including all surcharges applicable under chapter 238,
pursuant to
requirements established by the department of taxation.
�
No registration certificate shall be issued
without proof of payment of the use tax."
PART III
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SECTION
5.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 6.
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This Act shall take effect on July 1, 2025;
provided that part II shall take effect on January 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
General
Excise Tax; Exemption; Diapers; Luxury Car Surcharge; Use Tax
Description:
Establishes
a general excise tax exemption for the gross proceeds or income from the
manufacture, production, packaging, and sale of diapers.
�
Establishes a surcharge on the general
excise tax and use tax for the sale or use of luxury cars.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.