HI HB698

Establishes a 1% general excise tax surcharge on gross proceeds or gross income from all commercial activities that utilize the State's ocean resources, including marine life, habitat, flora, and fauna.

Creates a conservation and resource enforcement special fund in the state treasury to receive surcharge proceeds, administered by the Department of Land and Natural Resources to support the Division of Conservation and Resource Enforcement.

Exempts from the surcharge any gross income taxed at the one-half percent or 0.15 percent rate, and any transactions, amounts, persons, or income exempt from general excise tax.

Requires taxpayers to designate the taxation district to which the ocean resources surcharge is assigned and file schedules with their general excise tax returns; imposes penalties of 10% for failure to file or correctly report the assignment.

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