On June 27, 2018, the Hawaii Department of Taxation released Announcement No. 2018-10 which provides guidance as to the application of the Economic Nexus Bill Act 41 following the decision in The department indicates through the lens of the Wayfair decision that the requirements of Act 41 ( $100,000 or more or 200 or more transactions) comport with the statutory “in the State” requirement as well as the U.S. Commerce Clause’s substantial nexus requirement.
It is important to note that Act 41 is effective on July 1, 2018, but applies to taxable years beginning after December 31, 2017. The state has indicated that certain taxpayers may owe tax for the period between January 2018 and June 2018.
You can read the entire announcement here.
About the Author
Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.More Content by Erik Wallin