Hawaii – SST Legislation Introduced

1/28/2013

SALT Report 2086 – The Hawaii State Legislature introduced a bill that would amend Hawaii’s current tax laws to implement the streamlined sales and use tax agreement. To participate and become a full member in the streamlined sales and use tax agreement, the State must adopt a single rate of general excise tax. To do this, the legislation proposes 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,
  • Eliminate the tax on businesses owned by disabled persons, and
  • Provide for destination-based sourcing and amnesty

The provisions in SB 948 would be effective if and when the State becomes a member of the SST Agreement.

For Further Information

Hawaii State Legislature – SB 948