Tax & Accounting Blog

Hawaii Legislature Adjourns Without Passing Major Sales Tax Bills

Indirect Tax, Sales and Use Tax, Sales Tax Nexus May 11, 2011

The Hawaii Legislature adjourned its 2011 regular session on May 5th without passing some important sales tax legislation. The following bills died upon the ending of the session:

S.B. 1355: would have conformed the state’s general excise tax laws to the Streamlined Sales and Use Tax (SST) Agreement

H.B. 1183: would have added a so-called “click-through nexus” or “Amazon” provision, an expanded nexus provision that would have presumed that an out-of-state person or entity conducting business in Hawaii was systematically and regularly engaging in business in Hawaii if certain conditions were satisfied. H.B. 1183 would have also imposed general excise tax reporting requirements for both remote sellers and in-state sellers that do not have a physical presence in Hawaii; and

S.B. 755: would have created an annual back-to-school tax holiday

Any of the legislation can be taken up again in a 2011 special session, if one is held, or next year in the 2012 regular session.