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Friday, July 13, 2018
Retroactive Internet Sales Tax--DoTax Chickens Out
By Selected News Articles @ 5:38 PM :: 4655 Views :: Small Business, Taxes

Hawaii withdraws plan for retroactive tax collection

From Bond Buyer July 13, 2018 (excerpt):

…Hawaii's Department of Taxation had announced on June 27 that a new state law slated to take effect four days later on July 1 would be applied for the entire 2018 calendar year on out-of-state online retailers with at least 200 transactions or $100,000 in sales in the state.

Hawaii Gov. David Ige had signed the legislation on June 12. It uses the same standard as the South Dakota law. The Supreme Court supported that state's law and ruled against its opponents in South Dakota v. Wayfair, Inc. on June 21.

A spokeswoman for the governor told The Bond Buyer in an email on Thursday that the state was going ahead with implementing the new law.

But Thursday evening the spokeswoman updated that information with a copy of a Tuesday announcement from the state's Department of Taxation that essentially withdrew the plan to retroactively collect the tax.

“To avoid any constitutional concerns, the department will not retroactively administer Act 41,” the announcement said….

read … Article

July 10, 2018: DEPARTMENT OF TAXATION ANNOUNCEMENT NO. 2018-10

As Explained: Supreme Court Legalizes Internet Sales Tax--And Hawaii May Get Nothing

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