HI HB831

Allows licensed contractors (as defined in HRS §237-6 and licensed under chapter 444) to pay general excise tax liability by completing construction or renovation projects for the State, subject to director approval.

Eligible projects must either have received inadequate bids/proposals or be valued at no more than $25,000.

Contractors must complete projects to satisfaction of state inspectors and established standards to constitute payment of tax liability.

If a contractor fails to complete a project or loses licensure, they owe the full general excise tax liability plus all costs of the entire project.

Department of Taxation, in cooperation with Commerce and Consumer Affairs, Accounting and General Services, and the State Procurement Office, shall adopt rules by the 2012 legislative session to implement this payment method.