HI SB2896

Clarifies that wholesale sales of tangible personal property are subject to a one-half of one per cent general excise tax rate, restoring a rate inadvertently repealed by Act 135, Session Laws of Hawaii 2003.

Amends Section 237-13, Hawaii Revised Statutes, to reinstate the provision that wholesalers of tangible personal property pay tax at one-half of one per cent of gross proceeds of sales.

Applies the one-half of one per cent rate to wholesalers in service businesses under section 237-4(a)(10), while maintaining the standard four per cent rate for non-wholesale service businesses.

Clarifies that wholesale sales remain subject to section 237-13.3 requirements in addition to the reduced tax rate.

Takes effect upon approval.