Bill Text: HI SB2282 | 2018 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2018-02-07 - The committee on CPH deferred the measure. [SB2282 Detail]
Download: Hawaii-2018-SB2282-Introduced.html
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THE SENATE |
S.B. NO. |
2282 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Obligations of marketplace providers. (a)
Any marketplace provider that facilitated over $100,000 in taxable
retail sales to customers in the State for taxable year 2018 for one or more
marketplace participants shall collect and remit general excise taxes on all
taxable retail sales that the marketplace provider facilitates for marketplace
participants to customers in the State.
(b) Any marketplace provider that does not meet
the requirements pursuant to subsection (a) shall begin collecting general
excise taxes on taxable retail sales that the marketplace provider facilitates
for marketplace participants to customers in the State after the marketplace
provider has facilitated over $100,000 in taxable retail sales to customers in
the State for one or more marketplace participants. Marketplace providers shall begin collecting
general excise taxes as required pursuant to this subsection on the first day
of the calendar month following the month in which the marketplace provider
meets the $100,000 sales threshold.
(c) Once a marketplace provider has been required
to collect general excise taxes under subsection (a) or (b), such collection
shall continue for at least twelve months.
If after the expiration of the twelve-month period the marketplace
provider can demonstrate to the department that during the twelve-month period
the marketplace provider's total taxable retail sales facilitated for one or
more marketplace participants was less than or equal to $100,000, the
marketplace provider may elect to cease collecting tax until such time as
collection is required pursuant to subsection (b).
(d) Marketplace providers shall not be required
to collect and remit general excise taxes on all taxable retail sales pursuant
to this section if the marketplace provider requests and maintains a copy of
the marketplace participant's registration to collect general excise taxes in
the State.
(e) Marketplace providers shall report the general
excise taxes pursuant to this section separately from any general excise taxes
collected on taxable retail sales made directly by the marketplace provider, or
affiliates of the marketplace provider, to customers in the State using a
separate marketplace provider form to be made available by the department.
(f) A marketplace provider shall not be subject
to audit by the department with respect to the retail sales for which it is
required to collect and remit general excise taxes pursuant to this section. Nothing in this subsection shall preclude the
department from auditing marketplace participants with respect to sales
facilitated by marketplace providers.
(g) Marketplace providers may rely in good faith
on information, including nexus determinations and product categorizations,
provided by a marketplace participant. A
marketplace provider shall not be liable for the failure to collect and remit
the correct amount of general excise tax if:
(1) The error was
due to incorrect or insufficient information given to the marketplace provider
by the marketplace participant; or
(2) The marketplace
participant or customer has remitted the general excise tax at issue;
provided that this subsection shall not apply if
the marketplace provider and the marketplace participant are related.
(h) Marketplace providers shall be allowed a
credit against the general excise taxes required to be collected and remitted
on behalf of marketplace participants pursuant to this section in an amount
equal to an amount determined by the department. Nothing in this section shall preclude the
department from auditing the credit taken against the general excise taxes
collected by marketplace providers on behalf of marketplace participants.
(i) No class action shall be brought against a
marketplace provider in any court of the State on behalf of customers arising
from or in any way related to an overpayment of general excise taxes collected
on sales facilitated by the marketplace provider, regardless of whether that
claim is characterized as a tax refund claim.
Nothing in this section affects a customer's right to seek a refund
directly from the department.
(j) Nothing in this section shall affect the
obligation of any consumer to remit general excise taxes for any taxable transaction
for which a marketplace provider or seller does not collect and remit general
excise taxes.
(k) Nothing in this section shall interfere with
the ability of a marketplace provider and a marketplace participant to enter
into an agreement regarding the fulfillment of the requirements of this
section, including an agreement that the marketplace participant will report
and remit any general excise taxes on retail sales facilitated by the
marketplace provider.
(l) For the purposes of this section:
"Department" means the
department of taxation.
"Marketplace
participant" means any person that sells tangible personal property or
services via the forum provided by a marketplace provider.
"Marketplace provider"
means any person who, pursuant to an agreement with one or more marketplace
participants, facilitates sales for marketplace participants; provided that a
marketplace provider facilitates a sale for a marketplace participant if the
marketplace provider:
(1) Provides a
forum for the listing for sale of tangible personal property or taxable
services for sale by the marketplace participant, including a catalog or
internet website; and
(2) Either directly
or indirectly, through agreements or arrangements with marketplace
participants, collects receipts from the customer and transmits those receipts
to the marketplace participant, regardless of whether the marketplace provider
receives compensation or other consideration in exchange for its services.
"Related" means connected by
legal guardianship, trusteeship, blood, or marriage.
"Taxable retail sales"
means any sales of tangible personal property or services that are subject to
general excise taxes under this chapter."
SECTION 2. Chapter 238, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§238- Obligations
of marketplace providers. (a) Any marketplace provider that facilitated
over $100,000 in taxable retail sales to customers in the State for taxable
year 2018 for one or more marketplace participants shall collect and remit use
taxes on all taxable retail sales that the marketplace provider facilitates for
marketplace participants to customers in the State.
(b) Any marketplace provider that does not meet
the requirements pursuant to subsection (a) shall begin collecting use taxes on
taxable retail sales that the marketplace provider facilitates for marketplace
participants to customers in the State after the marketplace provider has
facilitated over $100,000 in taxable retail sales to customers in the State for
one or more marketplace participants.
Marketplace providers shall begin collecting use taxes as required
pursuant to this subsection on the first day of the calendar month following
the month in which the marketplace provider meets the $100,000 sales threshold.
(c) Once a marketplace provider has been required
to collect use taxes under subsection (a) or (b), such collection shall
continue for at least twelve months. If
after the expiration of the twelve-month period the marketplace provider can
demonstrate to the department that during the twelve-month period the
marketplace provider's total taxable retail sales facilitated for one or more
marketplace participants was less than or equal to $100,000, the marketplace provider
may elect to cease collecting tax until such time as collection is required
pursuant to subsection (b).
(d) Marketplace providers shall not be required
to collect and remit use taxes on all taxable retail sales pursuant to this
section if the marketplace provider requests and maintains a copy of the
marketplace participant's registration to collect use tax in the State.
(e) Marketplace providers shall report the use
taxes pursuant to this section separately from any use taxes collected on
taxable retail sales made directly by the marketplace provider, or affiliates
of the marketplace provider, to customers in the State using a separate
marketplace provider form to be made available by the department.
(f) A marketplace provider shall not be subject
to audit by the department with respect to the retail sales for which it is
required to collect and remit use taxes pursuant to this section. Nothing in this subsection shall preclude the
department from auditing marketplace participants with respect to sales
facilitated by marketplace providers.
(g) Marketplace providers may rely in good faith
on information, including nexus determinations and product categorizations,
provided by a marketplace participant. A
marketplace provider shall not be liable for the failure to collect and remit
the correct amount of use tax if:
(1) The error was
due to incorrect or insufficient information given to the marketplace provider
by the marketplace participant; or
(2) The marketplace
participant or customer has remitted the use tax at issue;
provided that this subsection shall not apply if
the marketplace provider and the marketplace participant are related.
(h) Marketplace providers shall be allowed a
credit against the use taxes required to be collected and remitted on behalf of
marketplace participants pursuant to this section in an amount equal to an
amount determined by the department.
Nothing in this section shall preclude the department from auditing the
credit taken against the use taxes collected by marketplace providers on behalf
of marketplace participants.
(i) No class action shall be brought against a
marketplace provider in any court of the State on behalf of customers arising
from or in any way related to an overpayment of use taxes collected on sales
facilitated by the marketplace provider, regardless of whether that claim is
characterized as a tax refund claim.
Nothing in this section affects a customer's right to seek a refund
directly from the department.
(j) Nothing in this section shall affect the
obligation of any consumer to remit use taxes for any taxable transaction for
which a marketplace provider or seller does not collect and remit use taxes.
(k) Nothing in this section shall interfere with
the ability of a marketplace provider and a marketplace participant to enter
into an agreement regarding the fulfillment of the requirements of this
section, including an agreement that the marketplace participant will report
and remit any use tax on retail sales facilitated by the marketplace provider.
(l) For the purposes of this section:
"Department"
means the department of taxation.
"Marketplace
participant" means any person that sells tangible personal property or
services via the forum provided by a marketplace provider.
"Marketplace provider"
means any person who, pursuant to an agreement with one or more marketplace
participants, facilitates sales for marketplace participants; provided that a
marketplace provider facilitates a sale for a marketplace participant if the
marketplace provider:
(1) Provides a
forum for the listing for sale of tangible personal property or taxable
services for sale by the marketplace participant, including a catalog or
internet website; and
(2) Either directly
or indirectly, through agreements or arrangements with marketplace
participants, collects receipts from the customer and transmits those receipts
to the marketplace participant, regardless of whether the marketplace provider
receives compensation or other consideration in exchange for its services.
"Related" means connected by
legal guardianship, trusteeship, blood, or marriage.
"Taxable retail sales"
means any sales of tangible personal property or services that are subject to
use taxes under this chapter."
SECTION 3. Nothing in this Act shall override, alter, or limit the department of taxation's ability to bring an action against any person for uncollected or unpaid taxes when the person, wilfully or unknowingly, fails to meet an obligation to collect retail taxes prior to the enactment of this Act because the person held the person's self out to be a marketplace provider, marketplace facilitator, or any other business not required to collect or pay retail taxes under state law, even though the person would have been considered a retailer or vendor pursuant to the laws in effect prior to the enactment of this Act.
SECTION 4. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 5. This Act shall apply to taxable years beginning after December 31, 2017.
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INTRODUCED BY: |
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Report Title:
Marketplace Provider; Marketplace Participant; General Excise Tax; Use Tax; Collect
Description:
Requires marketplace providers to collect general excise and use tax on taxable retail sales that the marketplace provider facilities for marketplace participants to customers after a certain threshold. Applies to taxable years after December 31, 2016.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
