Legislation (Senate Bill 2514) has been sent to Governor Ige for signature that adopts economic nexus standards for Hawaii General Excise Tax purposes. The General Excise Tax is Hawaii’s sales and use tax equivalent. Under Senate Bill 2514, a person is considered to be engaging in business in Hawaii for the purpose of the general excise tax law if, in the current or immediately preceding calendar year, the person has $100,000 or more in gross income, or two hundred or more separate transactions, from the sale of tangible personal property delivered into Hawaii, services used or consumed in Hawaii, or intangible property used in Hawaii. The law change will take effect on July 1, 2018, and applies to taxable years beginning after December 31, 2017. Please stay tuned to TWIST for more nexus updates.
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