HI SB2020

Clarifies that wholesalers qualify for the lower one-half of one percent tax rate only if the resale is subject to the highest general excise tax rate, preventing improper claims of the wholesale rate.

Adds a requirement to Section 237-4(a)(1) that sales to licensed retail merchants, jobbers, or other licensed sellers for resale must have the resale taxed at the highest rate to qualify for wholesale taxation.

Extends the highest tax rate requirement to sales of tangible personal property for service business purposes under Section 237-4(a)(8)(D) and service transactions under Section 237-4(a)(10)(F).

Applies similar restrictions to sales of amusements under Section 237-4(a)(13)(F), requiring resale taxation at the highest rate.

Takes effect upon approval with no retroactive application to rights, duties, penalties, or proceedings begun before the effective date.