HI HB66

Repeals section 237-26 of Hawaii Revised Statutes, which previously exempted gross proceeds from scientific contracts with the United States from general excise tax.

Removes the reference to section 237-26 in section 238-3(j), leaving only the exemption under section 237-29 as applicable to general excise tax exemptions.

Eliminates the tax exemption for contractors and subcontractors performing scientific work (including aerospace, agricultural, astronomical, biomedical, electronic, geophysical, and oceanographic work) for the federal government.

Eliminates the exemption for sales of tangible personal property to such contractors when the property is affixed to or becomes part of a scientific facility, or is consumed during contract performance.

Takes effect on July 1, 2015.