HI SB2405

Adopts conforming amendments to Hawaii's tax laws to enable the State to participate in the Streamlined Sales and Use Tax Agreement, which simplifies multi-state tax collection and administration.

Creates three new tax chapters: Chapter A (tax on wholesalers, service businesses, and contractors at 0.5% rate), Chapter B (tax on imported goods, services, and contracting at 0.5% rate), and Chapter C (insurance producer tax at 0.15% rate).

Establishes destination-based sourcing rules for sales tax, telecommunications sourcing provisions, bad debt deductions, and direct mail sourcing exemptions for out-of-state distribution.

Provides amnesty from prior uncollected use taxes for sellers who register under the agreement within 12 months of Hawaii's participation, and relieves sellers from liability for errors based on erroneous state tax data.

Creates a legislative oversight committee to monitor the Department of Taxation's implementation and compliance with the streamlined sales and use tax agreement, effective upon approval.