Hawaii Backtracks on Retroactive Collection for Remote Sellers

July 16, 2018 Erik Wallin

As reported in this forum, Hawaii has been one of the first states to expressly impose a collection and remittance requirement on remote sellers in the wake of the South Dakota v. Wayfair decision. Their requirement became effective July 1 and until recently purported to apply to transactions retroactive to January 1, 2018. However, Hawaii recently revised Announcement No. 2018-10 (issued 6/27/18). With this revision, they removed any directives requiring retroactive tax remittance. Specifically, they are now stating that in order to "avoid any constitutional concerns" taxpayers are advised that the Hawaii Department of Taxation will not retroactively administer Act 41 (an economic nexus bill), but only require remittance prospectively from July 1, 2018.  

You can find the most recent version of Hawaii Department of Taxation Announcement No. 2018-10 here.

About the Author

Erik Wallin

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.

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