THE SENATE

S.B. NO.

2508

TWENTY-NINTH LEGISLATURE, 2018

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Chapter 231, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"231- Businesses domiciled outside the State; nexus presumptions. (a) Notwithstanding any other law to the contrary, a person or entity conducting business in the State that has its commercial domicile in another state is presumed to be systematically and regularly engaging in business in the State and taxable under title 14 if, during any year:

(1) The person or entity engages in or solicits          or more business transactions with persons within the State; and

(2) The sum of the value of the person's or entity's income, gross proceeds, gross rental, or gross rental proceeds attributable to sources in this State equals or exceeds $ .

(b) Notwithstanding any requirement under title 14 that a person or entity remit tax on a monthly basis, if a person is taxable in the State by reason of this section, the person or entity may petition the director of taxation to allow the remitting of tax on a basis other than monthly for good cause.

(c) For purposes of this section, good cause includes compliance with the United States Constitution and the state constitution."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

General Excise Tax; Out-of-State Business; Nexus Standard

 

Description:

Creates a nexus standard for taxing out-of-state businesses on their business activities in Hawaii.

 

 

 

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