Hawaii Law Corrects Wholesale Excise Tax Rate Error
- May 1, 2014 | Gail Cole
Hawaii Senate Bill 2896, signed into law on April 23, 2014, and effective immediately, corrects an inadvertent repeal of general excise tax (GET) rate imposed upon the wholesale sale of tangible personal property.
The bill reads:
“The purpose of this Act is to undo the inadvertent repeal to clarify that the proper general excise tax rate imposed upon the wholesale sale of tangible personal property is one-half of one percent.”
The inadvertent repeal took place in 2003.
Hawaii imposes upon “every person engaging or continuing in the business of selling any tangible personal property whatsoever… a tax equivalent to four per cent of the gross proceeds of sales of the business.” Now the state once again allows the following provision: “in the case of a wholesaler, the tax shall be equal to one-half of one per cent of the gross proceeds of the sales of the business….”
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