HI HB398

Requires out-of-state retailers or vendors with $100,000+ in annual sales to Hawaii to notify purchasers by January 31 each year if purchases exceed $500 annually, including purchase dates and amounts without disclosing product details.

Out-of-state retailers must file annual statements with the Department of Taxation by March 1 showing total purchase amounts for each purchaser, with penalties of $10 per failure unless reasonable cause is shown.

Exempts retailers or vendors who voluntarily collect and remit use tax to the Department of Taxation from these notification and reporting requirements.

Prohibits the Department of Taxation from fining, charging interest, or otherwise penalizing individuals who receive notification and are required to pay use tax, limiting enforcement to tax payment only.

Amends the definition of "business" under Hawaii's general excise tax law to include out-of-state persons with no physical presence if they have $100,000+ in gross receipts attributable to Hawaii and maintain a computer server in the State.