study of Hawaii"s general excise tax on commissions

  • 60 Pages
  • 4.34 MB
  • English
Legislative Reference Bureau, State of Hawaii , [Honolulu]
Insurance -- Taxation -- Hawaii., Tax incidence -- Ha



Statementby Lester Ishado, researcher.
ContributionsHawaii. Legislature. Legislative Reference Bureau.
LC ClassificationsHG8121 .I74
The Physical Object
Paginationiii, 60 leaves ;
ID Numbers
Open LibraryOL4377523M
LC Control Number78621301

Tax Review Commission – Final Report Tax Review Commission Appendices Appendix A: “State of Hawaii Tax Review Commission Study: A Study of the Hawaii Tax System,” PFM Group Consulting LLC Appendix B: “The Economic Trade-Offs of Hawaii’s Major Tax Types,” Dr.

Seth S. Colby Appendix C: “Should Hawaii Tax Corporate Income Tax. For more information, visit the Department of Taxation’s website at TAX FACTS General Excise Tax (GET) This Tax Facts answers common GET questions.

Businesses are subject to GET on their gross receipts from doing business in Hawaii. Gross receipts are total business income before any business expenses are Size: KB. Hawaii Tax Treatment of Various Federal COVID Relief Programs and Payments Effective January 1,the General Excise and Use Tax was amended to provide a county surcharge thereby increasing the GET and Use tax rate for transactions attributable to the county.

Find out more. GENERAL EXCISE TAX LAW § CHAPTERPage 3 (Unofficial Compilation) Tax Information Release No. “General Excise Tax on the Fund-Raising Activities of Public School Sponsored Groups” Tax Information Release No.“Taxability of Gross Receipts Derived by Helicopter Tour Operators” Law Journals and ReviewsFile Size: KB.

Hawaii GE Tax Question #5 – I Didn’t Make a Profit – Do I Still Have to Pay. Yes (sorry).

Details study of Hawaii"s general excise tax on commissions FB2

Think of GE Tax as if it were a sales tax. Hawaii General Excise Tax is based on “gross” income, not “net income”. This means that all rents received are subject to the tax – even if you operated your rental unit at a loss.

A super simple guide to Hawaii GE (general excise tax). Learn what you need to know about these taxes. If you received a letter saying that you owe Hawaii General Excise Tax or Transient Accommodations Tax, click here for help.

Warning: Every tax situation is different and you may need more forms that are. Hawaii General Excise Tax Definition. While each state has its own methods for obtaining money — such as lottery sales, sales tax, or gambling — the General Excise Tax is Hawaii's largest source of income.

The GET is an added tax on gross income. This is on top of federal and state income taxes. It takes the place of a state sales tax in. Home» Real Estate Licensing and Education» Other Information of Interest» An Introduction to the General Excise Tax An Introduction to the General Excise Tax A Department of Taxation publication.

BY LOWELL L. KALAPA – A number of questions about Hawaii’s general excise tax seem to resurface with great regularity as old-timers and newcomers encounter the peculiarities of this unique tax.

The most often asked question is the rate of the tax. Statewide, the rate is 4% while on Oahu the rate is Author: Lowell Kalapa. The Legislature authorized county governments to adopt county surcharges on state general excise (GE) tax and use tax.

To establish the surcharge, the county must adopt a surcharge by ordinance. The City and County of Honolulu has levied a surcharge at a rate of % rate since with a current expiration date of Decem   Unlike sales tax, which is paid by consumers, the GET is levied on businesses’ gross income from wholesale goods, services, and rents.

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Any business, whether it’s a small business, self-employed, independent contractor, or freelancer, must obtain a general excise license and pay the tax. From the Hawaii Tax Foundation: The Hawaii general excise tax is eligible for the state or local sales tax deduction for federal tax purposes on schedule A of form Remember that you can deduct only one - your state income taxes paid or your sale tax (in our case general excise tax) paid.

Photo: Emily Metcalf. By Lowell L.

Description study of Hawaii"s general excise tax on commissions PDF

Kalapa – Hawaii’s general excise tax is the envy of every other state that imposes a retail sales tax because of its broad base, that is, it is applied to nearly every transaction that takes place in Hawaii. Such is not the case of the retail sales taxes found in more than forty other states.

Unlike the retail sales tax, which is usually imposed only on Author: Lowell Kalapa. What is that additional charge on our receipts. It’s none other than our good friend, the General Excise Tax (GET). Updated 2/28/ Sorry for the issues with this page info going missing and comments not being available — I was recently hacked and had to deal with it along with a backdoor that would reset the issue until solved.

Sales Tax Or Not. General Excise Tax, That Is A Beautiful Beast. by Lowell L. Kalapa, Tax Foundation of Hawaii Last week we raised the question of whether or not the latest Tax Review Commission has really had the opportunity to understand the current tax system before embarking on the quest to create the tax system of the “21 st Century.”.

One of the most misunderstood of Hawaii’s taxes. Hawaii general excise and use tax Unknown Binding – January 1, by Craig K Hirai (Author) See all formats and editions Hide other formats and editions Enter your mobile number or email address below and we'll send you a link to download the free Kindle App.

Then you can start reading Kindle books on your smartphone, tablet, or computer Author: Craig K Hirai. Taxes of Hawaii covers Tax Year Every year sincethis annual publication is updated with all new state taxation laws and judicial rulings.

Taxes of Hawaii is an invaluable tax-season tool used by Island and mainland CPAs, tax preparers and bookkeepers, as well as attorneys, small businesses, individual taxpayers and students. Where do I put in the Hawaii general excise tax amount that we paid quarterly inon federal and state income taxes.

The options under "other taxes. Official Website of the Aloha State. Includes helpful discussion of the general excise tax treatment of fundraising income. Top Ten Internal Controls All Nonprofits Should Implement The 10 internal controls nonprofit organizations should implement, courtesy of Jack Siegel, author of the Desktop Guide for Nonprofit Directors, Doing Good While Avoiding Trouble While Doing Good.

Hawaii General Excise Tax Last updated: 02/17/ AM The Hawaii General Excise Tax (GET) was established in the s and is somewhat unique in that it taxes both goods and services at every level, including food and medical care. It. States assign you a filing frequency when you register for your general excise tax permit.

In most states, how often you file general excise tax is based on the amount of general excise tax you collect from buyers in the state. In Hawaii, you will be required to file and remit general excise tax either monthly, quarterly or annually. Effective January 1,the general excise and use tax was amended to provide a % county surcharge on transactions attributable to the City and County of Honolulu and subject to the state general excise tax (GET) rate of 4% for a total rate of %.

The county surcharge does not apply to activities taxed at the % rate (e.g., wholesal-File Size: KB. Currently, combined general excise tax rates in Hawaii range from 4 percent to percent, depending on the location of the sale. General excise tax (GET) is levied on a business for the sale of tangible goods and some services.

The tax is charged to the seller and remitted to state tax authorities. The General Excise tax is charged to the business rather then the customer, but the business may pass some or all of the tax on to their customers similar to a traditional sales tax.

Hawaii strictly imposes a use tax on products or services that are purchased from other states but "landed" (used) in Hawaii. Oahu added a % surcharge to the general excise tax, effective Jan. 1,bringing that island’s excise tax rate to %. This added charge goes to fund Oahu’s mass transit system.

The general excise tax, on the other hand, is a tax on all the money that the business puts into the cash register for the day, week or month.

That includes the amount collected from the customer as the “pass-on” of the general excise tax. And while the 4% tax on four cents may seem insignificant, start talking about millions of dollars of.

The general excise tax, therefore, is considered to be an expense which businesses incur in the normal course of doing business in Hawaii, along with other expenses such as labor costs, utility bills, supplies, cost of inventory, and the like. the general excise tax is levied on gross income from almost.

General Excise Tax In addition to your federal and state income tax, you also need to file and pay Hawaii’s General Excise Tax (GET). It is a tax on the gross income of your business. The GET is either %, 4%, or % – it depends on your business activity and on which island your business is located.

Category: > Article Directory of Sales Tax Registration: Posted On: Sun Dec 11th, Described below guidelines to get General Excise Tax Permit Hawaii: Glossary: A word "Buyer" in this article is used in context of "Business" because the state of Hawaii does not recognize a buyer in order to collect General Excise text.

• General excise tax is created by Hawaii Revise Statute section • This tax is on “gross income” by businesses. Every business transaction in Hawaii should be imposed by it. • Unlike sales tax, which applies to tangible good and certain services (varies by state), general excise taxFile Size: KB.general excise tax purposes?

Very few business expenses may be deducted. Most expenses allowed as a deduction on your income tax return (e.g., cost of supplies, utility bills, etc.) are NOT deductible on your general excise tax return.

4. Is the general excise tax only imposed on retail sales? No; the general excise tax is imposed on grossFile Size: KB.

The Radios were delivered and the invoice was sent to finance which included a 4% sales tax. Finance correctly did not pay the sales tax but otherwise paid the invoice in full. The vendor is now telling me the 4% sales tax is really an excise tax the state of Hawaii charges all companies doing business in Hawaii or with customers in Hawaii.