SB948 Summary

• Expands the definition of "representative" under general excise tax law to include any person conducting activities in Hawaii that are significantly associated with a seller's ability to establish or maintain a market in the State, including selling property, procuring orders, making collections, and deliveries.

• Creates a presumption that a seller is engaging in business in Hawaii if an affiliated person or third party (other than common carriers) has substantial nexus in the State and engages in specified activities such as selling similar products, maintaining distribution facilities, using similar trademarks, or delivering/installing products.

• Establishes a presumption that a seller is engaged in business in Hawaii if the seller has agreements with Hawaii residents who refer customers for commissions, provided cumulative gross receipts from referred customers exceed $10,000 in the preceding twelve months; presumption may be rebutted with proof of no in-state solicitation activities.

• Requires sellers or lessors of tangible personal property or services to the State, state departments, or state agencies to register with the Department of Taxation as required sellers and comply with all tax collection requirements.

• Effective July 1, 2030.