HI SR111

Urges the Department of Taxation to take prompt and decisive action to address e-fairness and the tax collection disparity between online retailers and brick-and-mortar businesses.

Notes that the National Conference of State Legislatures estimates Hawaii lost over $122.5 million in 2012 due to inability to collect sales taxes on online and catalog purchases.

Acknowledges that current Commerce Clause interpretation prohibits states from requiring out-of-state online retailers without physical presence to collect sales taxes, giving them an unfair advantage over local competitors.

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

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