HI SB1107

Adds a new exemption to Hawaii's general excise tax (GET) for amounts received by related entities for employee compensation and related operating expenses.

Defines "related entities" to include affiliated groups, controlled groups, entities with 80% common ownership, and unitary businesses for income tax purposes, whether located in or outside Hawaii.

Exempts reimbursements by related companies for employee salaries, wages, employment taxes, vacation pay, sick pay, pensions, and insurance benefits.

Effective July 1, 2011, and preserved from repeal when section 237-24.7 is reenacted on December 31, 2014.