HI HB398

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

Mandates out-of-state retailers or vendors file annual statements with the Department of Taxation by March 1 showing total purchase amounts per customer, with magnetic media filing required for those with $100,000+ annual sales.

Imposes $10 penalties per failure for non-notification to purchasers and $10 per omitted customer for failure to file annual statements, unless reasonable or good cause is shown.

Exempts retailers or vendors who voluntarily collect and pay use tax to the state from these notification and reporting requirements.

Prohibits the Department of Taxation from imposing fines, interest, or penalties on individuals who receive notification but do not pay use tax, requiring only payment of the tax itself.