HI SB1318

Eliminates overbroad and redundant language from Hawaii's use tax law regarding exemptions for interstate commerce activities of common carriers.

Removes language in section 238-3(a) that broadly exempted persons and common carriers engaged in interstate or foreign commerce from use tax on or after April 1, 1978.

Retains the primary constitutional limitation on use tax by maintaining the requirement that tax cannot apply to activities that cannot legally be taxed under U.S. Constitution or federal law.

Notes that specific stevedoring and interstate commerce activities originally intended to be exempted are now covered by separate express exemptions elsewhere in tax law, making the removed language unnecessary.

Takes effect upon approval.