Hawaii – New Legislation Proposes Conforming to the Streamlined Sales and Use Tax Agreement

Salt Report 3565 – On January 23, 2015, new legislation was introduced to Hawaii’s Senate with the intention of implementing changes to Hawaii’s tax law that will allow Hawaii to participate in the national streamlined sales and use tax agreement. To participate and become a full member in the streamlined sales and use tax agreement, Hawaii must amend its tax law to be in conformity with the streamlined sales and use tax agreement. The state must also adopt a single rate of general excise tax, Hawaii’s substitute for a sales tax, to conform to the streamlined sales and use tax agreement.

This would be accomplished by:

(1)  Moving the 0.5 per cent tax rate for wholesale transactions to a new chapter.

(2)  Adding a new chapter on the taxation of imports of property, services, and          contracting.

(3)  Moving the 0.15 per cent tax on insurance producers to a new chapter.

(4)  Eliminating the tax on businesses owned by disabled persons.

 

Further Information:

S.B. NO. 259