HI HB66

Repeals Hawaii Revised Statutes Section 237-26, which 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), updating the general excise tax statute to reflect the repeal.

Eliminates tax exemptions for contractors and subcontractors performing scientific work (aerospace, agricultural, astronomical, biomedical, electronic, geophysical, oceanographic, and test range facilities) under U.S. government contracts.

Removes exemptions for sales of tangible personal property to such contractors when the property is affixed to or consumed in performance of the scientific contract work.

Effective date is July 1, 2015.