HI SB1355

Creates a presumption that out-of-state businesses with commercial domicile elsewhere are taxable in Hawaii if they engage in business with State residents and earn income from State sources.

Allows out-of-state and in-state businesses to file annual statements with the Department of Taxation listing sales to Hawaii residents instead of paying General Excise Tax (GET), if they lack physical presence in the State.

Annual statements must include customer names and addresses, sale dates, zip codes, and dollar amounts, but exclude product descriptions.

Businesses with physical presence in Hawaii (employees, agents, or property) remain subject to regular GET obligations and are excluded from the annual statement alternative.

Expands the definition of "engaging in business" to include sales referred through independent contractors or representatives in Hawaii, such as internet affiliate links, with a rebuttable presumption based on constitutional nexus standards.

Effective July 1, 2011 for taxable years beginning after December 31, 2010.