Hawaii Internet Retail Tax Bill 1405

I am doing something unusual. I’m getting political. I apologize to my readers for going off on a tangent, but I felt this was important to address.

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4 Responses to Hawaii Internet Retail Tax Bill 1405

  1. Glenn says:

    you didnt really post anything about it

  2. I guess you’re right Glenn. I should have given a little background information other than my video. So, here is a brief explanation. Hawaii is trying to tax companies that do not have a physical presence in the State such as Amazon.com, eHarmony, Expedia, etc. Amazon.com is fighting back by closing all accounts internet business owners had with them. They will not do business in the State until the tax goes away. So, that is really going to hurt a lot of small business owners that are counting on their affiliate accounts for income. Check out this article: Hawaii State Tax Bill on Internet-Based Merchants Passes Senate, Is Transmitted to the Governor for Approval

  3. Just wanted to let those interested know that Governor Linda Lingle vetoed the Hawaii Internet Retail Tax Bill 1405 on July 1st. Here is an article about it from Pacific Business News (Honolulu):

    Lingle Vetoes Online Tax Bill

    Gov. Linda Lingle on Wednesday vetoed a bill that would have taxed Hawaii businesses that are affiliates of online retailers like Amazon.

    Two big Internet retailers, Amazon and Overstock, this week cut ties with their sales affiliates in Hawaii because of the prospect of the state law that would require online stores to collect taxes on items.

    “I am vetoing this bill immediately to help ensure Hawaii is not economically hurt by legislation that was not well thought-out and would have negative consequences for non-profits such as the University of Hawaii bookstore, and businesses throughout our state,” Lingle said in a statement. “I am hopeful by vetoing this bill that Mainland-based companies will promptly restore their relationships with our state.”

    House Bill 1405 wouldn’t affect consumers who buy directly from online retailers like Amazon. It targets Hawaii-based Web sites that make commissions on sales by providing links to Mainland companies.

    Amazon, in a letter to its Hawaii affiliates on Tuesday, said it would gladly reopen its Associates program to Hawaii residents if Lingle were to veto the bill.

  4. Susie says:

    I was interested to see that the Governor of Hawaii vetoed the bill 1405.I had watched your video about the bill and was wishing for more information on it. It seemed my questions were answered in the comments from Glenn. I had heard that Hawaii was in very serious trouble financially, but I can’t see that would help the state as much as it would hurt the very people that need to be helped. The small business is the heart of any City or state but those who try to have a business at home or extra to help out are “just up for grabs” in that kind of situation. Thanks for reporting that Terry, we are having our own problems in our little town here in Texas and it seems like in such hard ecomomic times, the City is “grasping at straws” as they say by trying to pass all nature of things, including millions of dollars of Bonds. The people voted them down and the City government can’t understand Why….you can be political Terry , after all, you have to be creative either way.

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