HI HB1651

Amends Section 238-6 of Hawaii Revised Statutes to require out-of-state sellers to collect use taxes when they have agreements with in-state persons who refer potential customers, including through internet links or websites.

Defines "engaged in business in the State" to include sellers with substantial nexus to Hawaii who have affiliate relationships, use similar business names or trademarks, or have in-state persons performing services on their behalf.

Establishes a $10,000 threshold: sellers must collect taxes if cumulative sales from in-state referrals exceed $10,000 and total in-state sales exceed $10,000 within the preceding twelve months.

Provides exceptions allowing sellers to demonstrate that in-state persons did not engage in referrals satisfying commerce clause requirements or did not engage in solicitation activities during the preceding twelve months.

Effective July 1, 2030, provided that Hawaii does not enact complementary federal legislation by June 30, 2015 authorizing states to require out-of-state seller tax collection.