HI HR75

Urges the Department of Taxation to take prompt and decisive action addressing e-fairness issues related to online sales tax collection.

Notes that the Commerce Clause prohibits states from requiring out-of-state online retailers to collect sales taxes unless they have substantial nexus with the state, giving online businesses an unfair advantage over local competitors.

Cites NCSL estimates that Hawaii lost over $122.5 million in 2012 due to uncollected online sales taxes, revenue that could fund disaster relief, disease control, education, and other programs.

Requests the Department of Taxation submit a report on its efforts, findings, and recommendations including proposed legislation to the Legislature no later than twenty days before the 2017 Regular Session begins.

Directs certified copies of the resolution be transmitted to the Governor and Director of Taxation.