February 7, 2013
In early December, we posted about states taking action on online sales tax collection.
As we noted then, states can’t do much without federal legislation, and support is growing in Congress for a bill that would give states full authority to require online retailers to collect sales tax.
But in the meantime, more states have started looking at what they can do.
Hawaii, Florida, and Michigan are all considering bills that would require an out-of-state retailer to collect sales tax if the retailer has an affiliate in the state.
Hawaii is also looking at adopting the Streamlined Sales and Use Tax Agreement, a set of guidelines that make collecting sales tax easy for retailers.
And while Virginia isn’t considering state action, it is counting on congressional action. The state’s proposed plan for transportation funding assumes that Congress will pass online sales tax legislation, allowing Virginia to collect hundreds of millions of dollars in uncollected sales tax.
States have already said that online purchases are subject to sales tax—but most of that sales tax goes uncollected. What they need now is federal legislation, and with each state-level bill or resolution, they’re sending Congress the clear message that the time to act is now. Let’s hope Congress is listening.
January 25, 2011
Yesterday, Hawaii Senate Bill 568 was introduced by Senator Brickwood Galuteria.
We are really looking forward to voluntary testimony in support of this bill!
UPDATED 1/26/2011 (SEE NEW POST)
March 7, 2010
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.