STAND. COM. REP. NO.  1392

 

Honolulu, Hawaii

                , 2019

 

RE:   S.B. No. 396

      S.D. 1

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred S.B. No. 396, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO MARKETPLACE FACILITATORS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to facilitate the collection of general excise and use taxes by:

 

     (1)  Establishing that marketplace facilitators, that provide a physical or electronic forum for the sale of tangible or intangible property or services by another and collect payments from purchasers, are retail sellers subject to general excise and use tax requirements; and

 

     (2)  Establishing that other market actors that provide a physical or electronic forum for the sale of property or services by others may elect:

 

          (A)  To comply with notice and reporting requirements to enforce direct remittance of general excise and use taxes to the Department of Taxation by purchasers; or

 

          (B)  To be classified as a retailer subject to general excise and use tax requirements.

 

     Amazon supported this measure.  The Department of Taxation, Tax Foundation of Hawaii, and Retail Merchants of Hawaii provided comments.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 396, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

 

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

 

 

____________________________

SYLVIA LUKE, Chair