H.B. 1471 Summary

• Amends Hawaii income tax law to tax nonresident employees who telework on their total income if they were performing services in Hawaii before the COVID-19 state of emergency and continue the same services remotely due to pandemic-related circumstances.

• Establishes a presumption of tax nexus for nonresidents who immediately prior to Hawaii's March 4, 2020 COVID-19 emergency declaration were employees in the State and now perform the same services outside the State due to pandemic-related circumstances.

• Defines "pandemic-related circumstance" to include government orders, employer remote work policies complying with guidance, quarantine or isolation due to COVID-19, or any work arrangement where an employee moved their performance outside the State after the emergency declaration.

• Defines "Hawaii coronavirus disease 2019 state of emergency" as the state of emergency declared in the Governor's proclamation signed March 4, 2020.

• Effective date set for June 30, 3000.