Hawaii SST Non-Conformity – Bill Vetoed

Hawaii Governor Linda Lingle has vetoed Senate Bill 1678, which would have conformed Hawaii general excise tax laws with the Streamlined Sales and Use Tax Agreement. Although the Senate voted 23-2 to override the veto, the House of Representatives declined to override the veto; thereby, making the veto stand. The bill would have moved certain tax rates to new chapters (i.e. 0.5% tax on wholesale transactions); added a new chapter on the taxation of imports of property, services, and contracting; and eliminated the tax on businesses owned by disabled persons. Furthermore, the legislation would have provided for destination-based sourcing and amnesty. (S.B. 1678, vetoed by Hawaii Gov. Linda Lingle on July 15, 2009; Telephone Conversation, Hawaii Legislative Reference Bureau, July 16, 2009)

Posted on August 27, 2009