Hawaii SST Conformity Legislation Dead

Hawaii SST Conformity Legislation Dead. A bill that would have conformed Hawaii, an advisor state on the SST Governing Board, to the provisions of the Streamlined Sales and Use Tax (SST) Agreement died on April 29, 2010. The legislation, as passed by the Senate, would have:

– moved the 0.5% tax rate for wholesale transactions to a new chapter;
– added a new chapter on the taxation of imports of property, services, and contracting;
– moved the 0.15% tax on insurance producers to a new chapter;
– eliminated the tax on businesses owned by disabled persons; and
– provided for destination-based sourcing and amnesty.

On April 6, 2010, the Senate passed the SST conformity legislation in H.B. 2962, which would have become effective when Hawaii became a party to the SST Agreement. On April 14, 2010, the Senate passed a draft of S.B. 2405 with generally the same provisions as it passed in H.B. 2962. The House of Representatives did not pass the legislation. (S.B. 2405 and H.B. 2962, died upon adjournment of the Hawaii Legislature on April 29, 2010)

Posted on May 18, 2010