HI SB620

Requires out-of-state retailers or vendors not collecting general excise or use tax to notify Hawaii purchasers by January 31 each year of purchases exceeding a specified threshold amount, informing them of use tax obligations.

Mandates retailers or vendors file annual statements with the Department of Taxation by March 1 showing total purchases by each Hawaii customer, with the director able to require magnetic media filing for vendors with annual sales above a specified threshold.

Exempts out-of-state retailers or vendors who voluntarily collect and remit use tax to Hawaii from notification and reporting requirements.

Prohibits the Department of Taxation from imposing fines, interest, or penalties on purchasers who receive notifications but fail to pay use tax; penalties apply only to non-compliant retailers or vendors.

Amends the definition of "business" under Hawaii's general excise tax to include persons with no physical presence in the State if they have gross receipts of a specified amount or more and maintain a computer server physically present in Hawaii for business purposes.

Takes effect July 1, 2030.