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.
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