Bill Text: HI SB2890 | 2018 | Regular Session | Amended

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Bill Title: Relating To Taxation.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2018-04-24 - The conference committee deferred the measure. [SB2890 Detail]

Download: Hawaii-2018-SB2890-Amended.html

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THE SENATE	S.B. NO.	2890
TWENTY-NINTH LEGISLATURE, 2018		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 237-1, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Marketplace provider" means any person who sells or assists in the sale of tangible personal property on behalf of another seller and who provides customer service, processes payments, and controls the fulfillment process."

     2.  By amending the definition of "person" or "company" to read as follows:

     ""Person" or "company" includes every individual, partnership, society, unincorporated association, joint adventure, group, hui, joint stock company, corporation, trustee, personal representative, trust estate, decedent's estate, trust, trustee in bankruptcy, or other entity, whether such persons are doing business for themselves or in a fiduciary capacity, and whether the individuals are residents or nonresidents of the State, and whether the corporation or other association is created or organized under the laws of the State or of another jurisdiction.  Any person who [has in the person's possession, for sale in the State, the property of a nonresident owner, other than as an employee of such owner,] sells or assists in the sale of tangible personal property on behalf of another seller by providing customer service, processing payments, and controlling the fulfillment process shall be deemed the seller of the property, when sold[.], and the seller on whose behalf the sale is made shall be deemed to have made a sale at wholesale pursuant to section 237-4."

     3.  By amending the definition of "representative" to read as follows:

     ""Representative" means any salesperson, commission agent, manufacturer's representative, broker or other person who is authorized or employed by [an unlicensed] a seller to assist such seller in selling property for use in the State, by procuring orders for such sales or otherwise, and who carries on such activities in the State, it being immaterial whether such activities are regular or intermittent[; but the].  The term "representative" does not include [a]:

     (1)  A manufacturer's representative whose functions are wholly promotional and to act as liaison between an unlicensed seller and a seller or sellers, and which do not include the procuring, soliciting or accepting of orders for property or the making of deliveries of property, or the collecting of payment for deliveries of property, or the keeping of books of account concerning property orders, deliveries or collections transpiring between an unlicensed seller and a seller or sellers[.  Any unlicensed seller who in person carries on any such activity in the State shall also be classed as a representative.]; and

     (2)  A person who sells or assists in the sale of tangible personal property on behalf of another seller and who provides customer service, processes payments, and controls the fulfillment process."

     SECTION 2.  Section 237-2, Hawaii Revised Statutes, is amended to read as follows:

     "§237-2  "Business", "engaging" in business, defined.  As used in this chapter:

     "Business" includes all activities (personal, professional, or corporate) engaged in or caused to be engaged in with the object of gain or economic benefit either direct or indirect, without regard to physical presence in the State, but does not include casual sales.  A person with no physical presence in the State is engaged in business in this State if, in the current or immediately preceding calendar year, the person has gross receipts attributable to transactions in this State totaling $100,000 or more.  Gross receipts attributable to transactions in this State include gross receipts from sales that, but for the seller's lack of physical presence, would be taxable under this chapter and are facilitated by a marketplace provider that is engaged in business in this State.

     "Engaging", with reference to engaging or continuing in business, includes the exercise of corporate or franchise powers."

     SECTION 3.  Section 238-1, Hawaii Revised Statutes, is amended by amending the definition of "import" to read as follows:

     ""Import" (or any nounal, verbal, adverbial, adjective, or other equivalent of the term) includes:

     (1)  The importation into the State of tangible property, services, or contracting owned, purchased from an unlicensed seller, or however acquired, from any other part of the United States or its possessions or from any foreign country, whether in interstate or foreign commerce, or both; [and]

     (2)  The sale and delivery of tangible personal property owned, purchased from an unlicensed seller, or however acquired, by a seller who is or should be licensed under the general excise tax law from an out-of-state location to an in-state purchaser, regardless of the free on board point or the place where title to the property transfers to the purchaser[.]; and

     (3)  The sale of tangible personal property by, or assisted by, a licensed seller who provides customer service, processes payments, and controls the fulfillment process on behalf of an unlicensed seller for delivery to a purchaser in the State."

     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.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2030.

 

Report Title:

General Excise Tax; Use Tax; Tangible Personal Property; Marketplace Provider

 

Description:

Amends the general excise tax law by adding a definition for "marketplace provider".  Provides that a person with no physical presence in the State shall be considered to be engaged in business in the State if, in the current or immediately preceding calendar year, the person has gross receipts attributable to transactions in the State totaling $100,000 or more.  Clarifies that a person who sells or assists in the sale of tangible personal property and who provides customer service, processes payments, and controls fulfillment is the seller of the property for general excise tax and use tax purposes.  (SB2890 HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.