HI HB698

Imposes a 1% general excise tax surcharge on all gross proceeds and gross income from commercial activities that utilize Hawaii's ocean resources, including marine life, habitat, flora, and fauna used for commercial purposes.

Establishes a conservation and resource enforcement special fund in the state treasury to receive surcharge proceeds and finance activities of the department of land and natural resources' division of conservation and resource enforcement.

Applies surcharge to contracts entered into on or after June 30 of the year prior to the taxable year, with exemptions for transactions taxed at rates of 0.5% or 0.15%, and transactions exempt from general excise tax.

Requires taxpayers to designate taxation districts for surcharge assignment, file schedules with periodic and annual general excise tax returns, and imposes a 10% penalty for failure to file required schedules or correctly report district assignments.

Takes effect upon approval and applies to taxable years beginning after December 31, 2010.