Act 164 amends Hawaii Revised Statutes (HRS) Section 237-4, relating to the definition of "wholesaler" and "jobber", to clarify that the General Excise Tax wholesale rate of ½ percent applies comparably to sales made to aquacultural and agricultural producers and cooperatives.

Act 164 was enacted to address the concerns of the aquaculture industry that the existing law did not clearly indicate to its suppliers that the ½ percent wholesale rate was available for certain sales to aquacultural producers in the same manner in which it applies to certain sales to agricultural producers.  Act 164 does not expand the application of the wholesale rate, but rather ensures that sales to aquacultural producers and cooperatives receive the wholesale rate when a comparable sale to an agricultural producer or cooperative would have qualified for the wholesale rate.

Act 164 takes effect on July 1, 2001.  However, as stated above, because Act 164 merely clarifies existing law, the effective date should not represent any change in the law's application.

The Department will be revising the instructions for the general excise/use tax returns because of Act 164.

Current forms and other tax information are available at the Department's website at:   www.state.hi.us/tax.  On Oahu, forms may be ordered by calling the Department's Forms Request Line at:  587-7572.  Persons who are not calling from Oahu, may call:  1-800-222-7572 (toll-free) to receive forms by mail or by fax.

/s/
MARIE Y. OKAMURA
Director of Taxation

HRS Section Explained:  HRS Section 237-4