HI HB1407

Clarifies that wholesale tax rate (0.5%) applies only when resale is subject to the highest general excise tax rate, preventing improper claims of the lower rate.

Amends Section 237-4(a)(1) to add requirement that sales to licensed retailers, jobbers, or other sellers for resale must result in resale taxed at the highest rate to qualify for wholesale taxation.

Adds similar "highest tax rate" requirement to Section 237-4(a)(8)(D) for sales of tangible personal property to service providers or for transient accommodations.

Adds "highest tax rate" requirement to Section 237-4(a)(10)(F) for service sales to licensed sellers, contractors, or transient accommodation providers.

Effective date: July 1, 2022; does not affect rights, duties, penalties, or proceedings that matured or began before effective date.