HI HB831

Allows licensed contractors to pay general excise tax liability by negotiating and completing construction or renovation projects for the State, subject to director discretion and written request.

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

Contractors must complete projects to satisfaction of inspectors and established standards in order for work to constitute tax payment.

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

Department of Taxation must adopt rules in cooperation with other state departments by the 2012 legislative session to implement this alternative payment method.