Hawaii – Several General Excise Tax Exemptions Made Permanent

SALT Report 2857 – The Hawaii Department of Taxation issued guidance regarding recent legislation that made the temporary general excise tax exemptions for condominium common expenses paid by managers, sub-managers, and sub-operators and the exemption for hotel employee expenses paid by hotel operators and timeshare projects permanent.  Prior to the legislation these exemptions were set to expire on December 31, 2014.

Additionally, Act 163 repeals the cap of $400,000 on the aggregate amount of tax exempted per calendar year.  This provision applies to taxable years beginning after December 31, 2012.

For Further Information

Hawaii Department of Taxation – Announcement No. 2013-20

Hawaii State Legislature – Senate Bill 1360, Act 163