RELATING TO THE GENERAL EXCISE TAX.

HB955

HOUSE OF REPRESENTATIVES

H.B. NO.

955

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the general excise tax
.

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

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SECTION
1.
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Act 47, Session Laws of Hawaii 2024,
is amended by amending section 2 to read as follows:

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"SECTION

2
.
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Section 237-24.3, Hawaii Revised Statutes, is
amended to read as follows:

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"
�237-24.3
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Additional amounts not taxable.
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In addition to the amounts not taxable under section 237-24, this
chapter shall not apply to:

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(1)
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Amounts received
from the loading, transportation, and unloading of agricultural commodities
shipped for a producer or produce dealer on one island of this State to a
person, firm, or organization on another island of this State.
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The terms "agricultural commodity",
"producer", and "produce dealer" shall be defined in the
same manner as they are defined in section 147-1; provided that agricultural
commodities need not have been produced in the State;

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(2)
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Amounts received
by the manager, submanager, or board of directors of:

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(A)
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An association of
a condominium property regime established in accordance with chapter 514B or
any predecessor thereto; or

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(B)
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A nonprofit
homeowners or community association incorporated in accordance with chapter
414D or any predecessor thereto and existing pursuant to covenants running with
the land,

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in reimbursement of sums paid
for common expenses;

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(3)
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Amounts received
or accrued from:

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(A)
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The loading or
unloading of cargo from ships, barges, vessels, or aircraft, including
stevedoring services as defined in section 382-1, whether or not the ships,
barges, vessels, or aircraft travel between the State and other states or
countries or between the islands of the State;

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(B)
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Tugboat services
including pilotage fees performed within the State, and the towage of ships,
barges, or vessels in and out of state harbors, or from one pier to another;

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(C)
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The transportation
of pilots or governmental officials to ships, barges, or vessels offshore;
rigging gear; checking freight and similar services; standby charges; and use
of moorings and running mooring lines; and

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(D)
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Wharfage and
demurrage imposed under chapter 266 that is paid to the department of
transportation;

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(4)
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Amounts received
by an employee benefit plan by way of contributions, dividends, interest, and
other income; and amounts received by a nonprofit organization or office, as
payments for costs and expenses incurred for the administration of an employee
benefit plan; provided that this exemption shall not apply to any gross rental
income or gross rental proceeds received after June 30, 1994, as income
from investments in real property in this State; and provided further that
gross rental income or gross rental proceeds from investments in real property
received by an employee benefit plan after June 30, 1994, under written
contracts executed prior to July 1, 1994, shall not be taxed until the
contracts are renegotiated, renewed, or extended, or until after December 31,
1998, whichever is earlier.
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For the
purposes of this paragraph, "employee benefit plan" means any plan as
defined in title 29 United States Code section 1002(3), as amended;

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(5)
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Amounts received
for purchases made with United States Department of Agriculture food coupons
under the federal food stamp program, and amounts received for purchases made
with United States Department of Agriculture food vouchers under the Special
Supplemental Foods Program for Women, Infants and Children;

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(6)
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Amounts received
by a hospital, infirmary, medical clinic, health care facility, pharmacy, or a
practitioner licensed to administer the drug to an individual for selling
prescription drugs or prosthetic devices to an individual; provided that this
paragraph shall not apply to any amounts received for services provided in
selling prescription drugs or prosthetic devices.
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As used in this paragraph:

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"Prescription
drugs" are those drugs defined under section 328-1 and dispensed by
filling or refilling a written or oral prescription by a practitioner licensed
under law to administer the drug and sold by a licensed pharmacist under
section 328-16 or practitioners licensed to administer drugs; provided that
"prescription drugs" shall not include cannabis or manufactured
cannabis products authorized pursuant to chapters 329 and 329D; and

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"Prosthetic
device" means any artificial device or appliance, instrument, apparatus,
or contrivance, including their components, parts, accessories, and
replacements thereof, used to replace a missing or surgically removed part of
the human body, which is prescribed by a licensed practitioner of medicine,
osteopathy, or podiatry and that is sold by the practitioner or that is
dispensed and sold by a dealer of prosthetic devices; provided that
"prosthetic device" shall not mean any auditory, ophthalmic, dental,
or ocular device or appliance, instrument, apparatus, or contrivance;

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(7)
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Taxes on transient
accommodations imposed by chapter 237D and passed on and collected by operators
holding certificates of registration under that chapter;

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(8)
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Amounts received
as dues by an unincorporated merchants association from its membership for
advertising media, promotional, and advertising costs for the promotion of the
association for the benefit of its members as a whole and not for the benefit
of an individual member or group of members less than the entire membership;

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(9)
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Amounts received
by a labor organization for real property leased to:

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(A)
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A labor
organization; or

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(B)
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A trust fund
established by a labor organization for the benefit of its members, families,
and dependents for medical or hospital care, pensions on retirement or death of
employees, apprenticeship and training, and other membership service programs.

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As used in this paragraph,
"labor organization" means a labor organization exempt from federal
income tax under section 501(c)(5) of the Internal Revenue Code, as amended;

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(10)
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Amounts received
from foreign diplomats and consular officials who are holding cards issued or
authorized by the United States Department of State granting them an exemption
from state taxes;

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(11)
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Amounts received
as rent for the rental or leasing of aircraft or aircraft engines used by the
lessees or renters for interstate air transportation of passengers and
goods.
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For purposes of this paragraph,
payments made pursuant to a lease shall be considered rent regardless of
whether the lease is an operating lease or a financing lease.
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The definition of "interstate air
transportation" is the same as in 49 U.S.C. section 40102; and

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(12)
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Amounts received
by a hospital, infirmary, medical clinic, health care facility, or pharmacy, [
or
]
a medical or dental practitioner,
or a nurse entrepreneur,
for
healthcare-related goods or services purchased under the medicare, medicaid, or
TRICARE programs.
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For the purposes of
this paragraph, the healthcare-related services need not be performed by a
medical or dental practitioner but may be performed by a physician's assistant,
nurse, or other employee under the medical or dental practitioner's direction.
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As used in this paragraph:

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"Medicaid" means
the program established under Title XIX of the Social Security Act of 1935, as
amended;

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"Medical or dental
practitioner" means a physician or osteopathic physician licensed pursuant
to chapter 453; a dentist licensed under chapter 448; an advanced practice
registered nurse licensed pursuant to chapter 457; or a pharmacist licensed
pursuant to chapter 461;

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"Medicare" means
the program established under Title XVIII of the Social Security Act of 1935,
as amended; and

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"TRICARE" means
the program of the Department of Defense military health system managed by the
Defense Health Agency, or any successor program.""

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SECTION
2.
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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 3.
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This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

General
Excise Tax; Nurse Entrepreneurs; Exemption; Medicare; Medicaid; TRICARE

Description:

Exempts
from the general excise tax amounts received by a nurse entrepreneur for health
care-related goods and services purchased under Medicaid, Medicare, or TRICARE.

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