H.B. 2416 Summary

• Exempts intangible property used outside Hawaii from the general excise tax, with sellers required to obtain a certificate from purchasers stating the property will be used out-of-state.

• Imposes a 4 percent use tax on intangible property acquired from an unlicensed seller and imported or used in Hawaii, with tax accruing when the property is acquired.

• Expands definitions in Chapter 238 to include intangible property in "import," "price," "property," "purchase and sale," "seller," and "service business or calling" provisions.

• Allows taxpayers a full credit for sales or use taxes legally paid to other states on the same transaction, not to exceed the Hawaii use tax amount.

• Takes effect upon approval and applies to taxable years beginning after December 31, 2018.