Hawaii – Click-Through Legislation Introduced (HB 1651)

SALT Report 3229 – On January 17, 2014, Rep Isaac W. Choy introduced bill HB 1651.  The bill “requires the collection of use taxes by sellers of tangible personal property who enter into agreements under which a person in the State refers potential purchasers to the seller, including by an internet link or web site, or performs related services in the State on behalf of the seller.”

The threshold for enforcement of this presumption will be $10,000 in the preceding 12 months.  In order to rebut the presumption of nexus a seller would have to prove (1) protection pursuant to the US commerce clause or (2) provide sworn affidavits from their contracted relationships that no solicitation activity took place on the seller’s behalf.

For Further Information:

Hawaii State Legislature – HB 1651

H.B. No. 1651