THE SENATE

S.B. NO.

2890

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.  Section 237-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Marketplace provider" means any person who sells or assists in the sale of tangible personal property on behalf of another seller and who provides customer service, processes payments, and controls the fulfillment process."

     SECTION 2.  Section 237-2, Hawaii Revised Statutes, is amended to read as follows:

     "§237-2  "Business", "engaging" in business, defined.  As used in this chapter:

     "Business" includes all activities (personal, professional, or corporate) engaged in or caused to be engaged in with the object of gain or economic benefit either direct or indirect, without regard to physical presence in the State, but does not include casual sales.  A person with no physical presence in the State is engaged in business in this State if, in any year, the person has gross receipts attributable to transactions in this State totaling $100,000 or more.  Gross receipts attributable to transactions in this State include gross receipts from sales that, but for the seller's lack of physical presence, would be taxable under this chapter and are facilitated by a marketplace provider that is engaged in business in this State.

     "Engaging", with reference to engaging or continuing in business, includes the exercise of corporate or franchise powers."

     SECTION 3.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

GET; Marketplace Provider

 

Description:

Amends the general excise tax law by adding a definition for "marketplace provider."  Provides that a person with no physical presence in the State shall be considered to be engaged in business in the State if, in any year, the person has gross receipts attributable to transactions in the State totaling $100,000 or more.

 

 

 

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