HI HB345

Amends the definition of "business" under Hawaii's general excise tax law to include activities conducted without a physical presence in the State, effective July 1, 2017.

Expands the definition to cover remote sellers and online businesses, while maintaining existing exclusions for casual sales.

Excludes from the expanded definition: third-party content providers hosting websites on computers in Hawaii but owned by non-affiliated persons, and non-affiliated third-party call centers processing orders for non-Hawaii buyers.

Creates a gross receipts threshold exemption allowing persons without physical presence in the State to avoid taxation if they and their affiliates have less than $100,000 in gross receipts during the prior calendar year.

Defines "affiliate" as any business entity that directly or indirectly controls, is controlled by, or is under common control with another business entity.