Last Wednesday (March 3rd, 2010) the Hawaii Senate approved SB 2405, and sent it to the Hawaii House of Representatives for consideration.
SB 2405 adopts changes to the Hawaii General Excise Tax system to allow Hawaii to participate in the national Streamlined Sales and Use Tax Agreement.
After the Hawaii congress had passed a similar measure last yer (SB 1678), Gov. Lingle Vetoed the bill, then the Hawaii Senate voted to override the veto, but the House of Reps. did not.
This year, hopefully Gov. Lingle will allow SB 2405 to become law – now that Hawaii anticipates a $500,000,000+ budget gap. SB 2405 could allow Hawaii to collect on at least $47,000,000 in sales tax currently due, but logistically un-collectable. Admittedly SB 2405 may only be able to recover about 10% of Hawaii’s anticipated budget shortfall. Fortunately however, SB2405 does not require any new taxes, or any further painful budget cuts.