HI SB495

Amends Chapter 235 of Hawaii Revised Statutes to establish a nexus standard for taxing out-of-state businesses on income earned in Hawaii.

Presumes a person lacking physical presence in Hawaii is subject to state income tax if they engage in 200 or more business transactions with persons in the State during the current or preceding calendar year.

Alternatively presumes such a person is taxable if the value of their gross income from Hawaii sources equals or exceeds $100,000, or if their sales factor numerator for the State equals or exceeds $100,000.

Applies to taxable years beginning after December 31, 2019.