HB2880 Summary

• Increases "wholesale" tax rates from 0.5% to 1.0% under Hawaii's general excise, use, and public service company taxes, effective July 1, 2010.

• Modifies tax rates for manufacturers, producers, wholesalers, and service providers engaged in wholesale activities across multiple tax chapters (237, 238, and 239).

• Applies the rate increase to specific business categories including manufacturers' wholesale sales, service business wholesalers, and public utility wholesalers selling to resellers.

• Expires automatically on June 30, 2015, with existing statutory provisions reverting to their prior form unless reenacted by the legislature.

• Prevents counties from imposing surcharges on transactions taxed at the 1.0% wholesale rate.