hawaii-sales-tax.md68 lines2.9 KB
v20State
| 1 | --- |
| 2 | name: hawaii-sales-tax |
| 3 | description: Use this skill whenever asked about Hawaii General Excise Tax (GET). Trigger on phrases like "Hawaii GET", "General Excise Tax", "HI sales tax", "HRS §237". Hawaii has a GET on the SELLER, not a traditional sales tax. ALWAYS load us-sales-tax first. |
| 4 | version: 2.0 |
| 5 | --- |
| 6 | |
| 7 | # Hawaii General Excise Tax (GET) Skill v2.0 |
| 8 | |
| 9 | ## Section 1 -- Quick reference |
| 10 | |
| 11 | | Field | Value | |
| 12 | |---|---| |
| 13 | | Jurisdiction | Hawaii | |
| 14 | | Tax type | General Excise Tax (GET) -- NOT a traditional sales tax; tax on SELLER's gross income | |
| 15 | | Retail GET rate | 4.00% (4.50% on Oahu with county surcharge) | |
| 16 | | Wholesale rate | 0.50% | |
| 17 | | Services rate | 4.00% (4.50% Oahu) | |
| 18 | | Insurance commissions | 0.15% | |
| 19 | | Effective rate when passed to buyer | ~4.166% (to cover GET on the pass-through) | |
| 20 | | Tax base | Virtually ALL business activity including services, rentals, commissions | |
| 21 | | Sourcing | Destination-based | |
| 22 | | Economic nexus | $100,000 in gross proceeds or gross income | |
| 23 | | Tax authority | Hawaii Department of Taxation (DoTax) | |
| 24 | | Portal | https://tax.hawaii.gov | |
| 25 | | SST member | No | |
| 26 | | Skill version | 2.0 | |
| 27 | |
| 28 | **CRITICAL: GET is imposed on the SELLER, not the buyer. GET applies to virtually ALL transactions including services. GET pyramids (cascades) at every supply chain level.** |
| 29 | |
| 30 | ## Section 3 -- Transaction pattern library |
| 31 | |
| 32 | | Pattern | Taxable? | Notes | |
| 33 | |---|---|---| |
| 34 | | General TPP | TAXABLE 4% (4.5% Oahu) | Retail rate | |
| 35 | | Clothing | TAXABLE | No exemption | |
| 36 | | Grocery food | TAXABLE | No food exemption -- GET applies to all | |
| 37 | | Prepared food | TAXABLE | | |
| 38 | | ALL services (including professional) | TAXABLE | Hawaii taxes virtually ALL services | |
| 39 | | SaaS | TAXABLE | | |
| 40 | | Digital goods | TAXABLE | | |
| 41 | | Wholesale sales | TAXABLE at 0.50% | Lower wholesale rate | |
| 42 | | Prescription drugs | EXEMPT | | |
| 43 | | Manufacturing equipment | No specific exemption | GET applies broadly | |
| 44 | | Resale | 0.50% wholesale rate | Not fully exempt; taxed at wholesale rate | |
| 45 | |
| 46 | ## Section 5 -- Classification rules |
| 47 | |
| 48 | ### GET pyramiding |
| 49 | |
| 50 | GET cascades at every level. Manufacturer pays 0.5% on wholesale sales. Wholesaler pays 0.5%. Retailer pays 4%. If passed to buyer, the pass-through amount is additional gross income subject to GET again. |
| 51 | |
| 52 | ### Tax on virtually everything |
| 53 | |
| 54 | Hawaii has one of the broadest tax bases in the US. Legal, accounting, medical, consulting -- all subject to GET at 4%. |
| 55 | |
| 56 | ## Section 10 -- Prohibitions |
| 57 | |
| 58 | - NEVER call Hawaii's tax a "sales tax" -- it is a General Excise Tax on the seller's gross income. |
| 59 | - NEVER assume food is exempt -- Hawaii taxes grocery food under GET. |
| 60 | - NEVER assume services are exempt -- Hawaii taxes virtually ALL services. |
| 61 | - NEVER forget the pyramiding effect -- GET cascades through the supply chain. |
| 62 | - NEVER forget the Oahu county surcharge (0.50% additional). |
| 63 | - NEVER compute any number. |
| 64 | |
| 65 | ## Disclaimer |
| 66 | |
| 67 | Informational only. Review by qualified professional required before filing. |
| 68 |
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Use this skill whenever asked about Hawaii General Excise Tax (GET). Trigger on phrases like "Hawaii GET", "General Excise Tax", "HI sales tax", "HRS §237". Hawaii has a GET on the SELLER, not a traditional sales tax. ALWAYS load us-sales-tax first.
US-HAty-2025