Hawaii – Streamlined Sales and Use Tax Agreement Legislation

SALT Report 1364 – The Hawaii Senate introduced legislation that would change the state’s tax laws and allow Hawaii to become a member of the Streamlined Sales and Use Tax Agreement. To participate in the streamlined sales and use tax agreement, Hawaii must adopt a single rate of general excise tax, the state’s alternative to sales tax. Therefore, following recommendations received by the SST Governing Board Hawaii has agreed to:

  • Move the 0.5% tax rate for wholesale transactions to a new chapter
  • Add a new chapter on the taxation of imports of property, services, and contracting
  • Move the 0.15% tax on insurance producers to a new chapter; and
  • Eliminate the tax on businesses owned by disabled persons
The legislation would also provide amnesty for uncollected or unpaid sales tax under chapter 237, or use tax under chapter 238, including any county surcharges, to a seller who registers to pay or to collect and remit sales or use tax on transactions made to purchasers in Hawaii according to the terms of the Streamlined Sales and Use Tax Agreement.
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