HI HB968

Establishes that taxpayers who itemize and pass on Hawaii taxes (such as general excise and transient accommodations taxes) to consumers in receipts, contracts, invoices, or billing statements are liable for remitting those amounts to the State unless returned to consumers.

Allows liability reductions for amounts returned to consumers, rounding to the nearest cent, proper deductions, income splitting provisions, uncollected amounts, and other department-authorized adjustments, but adjustments cannot reduce liability below the actual tax due.

Requires the Department of Taxation to adopt administrative rules establishing maximum rates for passing on taxes and imposes civil penalties of up to $500 per violation for charging rates higher than the maximums.

Authorizes the Department of Taxation to notify the Department of Commerce and Consumer Affairs when judicial appeals commence involving taxpayers who failed to remit passed-on taxes or who have been assessed penalties under this section.

Takes effect January 7, 2059.