HI HB1183

Adopts conforming amendments to Hawaii's general excise and use tax laws to enable the state to participate in the national Streamlined Sales and Use Tax Agreement, which simplifies tax systems and levels the playing field between local and out-of-state retailers.

Creates three new tax chapters: Chapter A (tax on wholesalers, service businesses, and contractors at 0.5%), Chapter B (tax on imports of goods and services at 4%), and Chapter C (insurance producer tax at 0.15%).

Establishes destination-based sourcing rules for sales tax, telecommunications sourcing provisions, and provisions for bad debt deductions, direct mail sourcing, and amnesty for sellers registering under the agreement.

Removes previous graduated tax rate structures and establishes a single 4% retail sales tax rate, while moving wholesaler and certain service taxes to the new chapters to achieve the uniformity required by the Streamlined Sales Tax Agreement.

Creates a legislative oversight committee to monitor the Department of Taxation's implementation and compliance with the streamlined sales and use tax agreement, with committee members appointed by legislative leaders.