HI SCR149

Urges the Department of Taxation to take prompt and decisive action to address e-fairness regarding sales tax collection from out-of-state online retailers.

Notes that out-of-state online-only retailers have an unfair advantage because current Commerce Clause interpretation prohibits states from requiring sales tax collection without substantial physical presence.

Cites estimates that Hawaii lost over $122.5 million in 2012 from inability to collect sales taxes on online and catalog purchases, revenue that could fund disaster relief, disease control, and K-12 education.

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