The Department of Taxation has amended sections 18-237-13, 18-238-1, and 18-238-2, Hawaii Administrative Rules (HAR), relating to the application of the general excise tax and use tax to the sale of tangible personal property by an out-of-state seller, including drop shipments. Specifically, the amendments address the following: (1) application of the general excise tax and use tax to the sale of tangible personal property by an out-of-state seller to a customer in Hawaii; (2) application of the general excise tax and use tax to drop shipments; (3) clarifies the method of calculating the landed value of motor vehicles imported into the State; and (4) specifies that labor costs for reconditioning tangible personal property are included in the landed value.
To request a copy of the rules, please call the Department of Taxation, Forms Request Line at: 808-587-7572 or 1-800-222-7572 and select the "mail" option. You will be asked to leave your name, address, and type of document requested (i.e., drop shipment rules). A copy of the rule and other tax information may also be found on our website at: http://www.state.hi.us/tax/tax.html.
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RAY K. KAMIKAWA
Director of Taxation