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Hawaii Law Corrects Wholesale Excise Tax Rate Error


 Hawaii corrects a mistake from 2003.

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….”

How do you keep up with tax changes, intended or inadvertent? Learn how an automated solution works.

photo credit: ktpupp via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.