Bill Text: HI SCR39 | 2013 | Regular Session | Introduced

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Bill Title: Taxation; Electronic Commerce; General Excise Tax

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-03-05 - Referred to PSM/JDL, WAM. [SCR39 Detail]

Download: Hawaii-2013-SCR39-Introduced.html

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THE SENATE	S.C.R. NO.	39
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

 

 

urging Congress and the President of the United States to enact legislation to allow a state to require out-of-state vendors to collect the state's general excise, sales, and use taxes on sales to its residents.

 

 

     WHEREAS, the Supreme Court of the United States held in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), that the Commerce Clause of the Constitution of the United States prohibits a state from requiring an out-of-state vendor to collect and remit sales or use taxes on sales to consumers in the state unless the retailer has a physical presence in the state; and

 

     WHEREAS, as a result of the Supreme Court's decision, Hawaii is unable to compel out-of-state vendors to collect and remit the state general excise or use taxes on sales to Hawaii residents; and

 

     WHEREAS, in a study conducted for the Tax Review Commission, Dr. William F. Fox determined that approximately $335,830,000 in general excise tax revenues were due on electronic commerce purchases made by Hawaii residents and businesses in 2012; and

 

     WHEREAS, Dr. Fox estimated that, of the $335,830,000 in general excise tax revenues due in 2012, approximately $144,880,000 was not collected due to noncompliance with the general excise tax; and

 

     WHEREAS, as sales conducted through electronic commerce continue to grow, the amount of tax revenues lost due to uncollected general excise taxes is also expected to increase; and

 

     WHEREAS, in Quill, the Supreme Court further held "that the underlying issue is not only one that Congress may be better qualified to resolve, but also one that Congress has the ultimate power to resolve[;]" now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, the House of Representatives concurring, that the United States Congress and the President of the United States are urged to enact legislation to allow a state to require out-of-state vendors to collect and remit its general excise, sales, and use taxes on the vendors' sales to customers in the state; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the President of the United States, the Majority Leader of the United States Senate, the Speaker of the United States House of Representatives, and the members of Hawaii's congressional delegation.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Taxation; Electronic Commerce; General Excise Tax