Source: https://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0238/HRS_0238-0001.htm
Timestamp: 2020-01-24 11:32:33
Document Index: 208851264

Matched Legal Cases: ['§238', '§2', '§40', '§119', '§238', '§6', '§2', '§4', '§8', '§17', '§4', '§4', '§4', '§4', '§2', '§3', '§7', '§3', '§8', '§2', '§1', '§3', '§3', '§7', '§237', '§238']

§238-1 Definitions, generally. Whenever used in this chapter, unless otherwise required by the context:
"General excise tax law" means chapter 237, as amended from time to time.
"Import" (or any nounal, verbal, adverbial, adjective, or other equivalent of the term) includes:
(1) The importation into the State of property, services, or contracting owned, purchased from an unlicensed seller, or however acquired, from any other part of the United States or its possessions or from any foreign country, whether in interstate or foreign commerce, or both;
(2) The sale and delivery of property owned, purchased from an unlicensed seller, or however acquired, by a seller who is or should be licensed under the general excise tax law from an out-of-state location to an in-state purchaser, regardless of the free on board point or the place where title to the property transfers to the purchaser; and
(3) The sale of tangible personal property, intangible property, or services by a marketplace facilitator with a valid license issued pursuant to section 237-9 on behalf of an unlicensed seller for delivery to or use by a purchaser in the State.
"Marketplace facilitator" shall have the same meaning as in section 237-1.
"Person", "business", "engaging in business", "retailer", "wholesaler", "jobber", and "contractor" have the meanings defined by chapter 237.
"Price" means the total amount for which property, services, or contracting are purchased, valued in money, whether paid in money or otherwise, and wheresoever paid; provided that cash discounts allowed and taken on sales shall not be included.
"Property" means tangible personal property, intangible property, and prepaid telephone calling services but does not include:
(6) Dividends as defined by chapter 235.
"Purchase" and "sale" means any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means, wheresoever consummated, of property, services, or contracting for a consideration.
"Purchaser" means any person purchasing property, services, or contracting and "importer" means any person importing property, services, or contracting, regardless if at the time of importation, the property, services, or contracting is owned by the importer, purchased from an unlicensed seller, or however acquired; provided that the terms "purchaser" and "importer" shall not include the State, its political subdivisions, or wholly owned agencies or instrumentalities of the State or a political subdivision; or the United States, its wholly owned agencies or instrumentalities, or any person immune from the tax imposed by this chapter under the Constitution and laws of the United States but the terms shall include national banks.
"Representation" refers to any or all of the following:
(3) A seller having in the State a person upon whom process directed to the seller from the courts of the State may be served, including the director of commerce and consumer affairs and the deputy director in the cases provided in section 414-64.
"Seller" means any person engaged in the business of selling property, services, or contracting, wheresoever engaged, but does not include the United States or its wholly owned agencies or instrumentalities other than national banks, the State or a political subdivision thereof, or wholly owned agencies or instrumentalities of the State or a political subdivision.
"Service business or calling" includes all activities engaged in for other persons for a consideration that involve the rendering of a service as distinguished from the sale of property or the production and sale of property. "Service business or calling" includes professional services, but does not include services rendered by an employee to the employee's employer.
"Unlicensed seller" means any seller who, with respect to the particular sale, is not subject to the tax imposed by chapter 237, whether or not the seller holds a license under that chapter, but does not include any seller with respect to any sale which is expressly exempted from the tax imposed by chapter 237.
"Use" (and any nounal, verbal, adjectival, adverbial, and other equivalent form of the term) herein used interchangeably means any use, whether the use is of such nature as to cause the property, services, or contracting to be appreciably consumed or not, or the keeping of the property or services for such use or for sale, the exercise of any right or power over tangible or intangible personal property incident to the ownership of that property, and shall include control over tangible or intangible property by a seller who is licensed or who should be licensed under chapter 237, who directs the importation of the property into the State for sale and delivery to a purchaser in the State, liability and free on board (FOB) to the contrary notwithstanding, regardless of where title passes, but the term "use" shall not include:
(9) The use of services or contracting imported for resale where the contracting or services are for resale, consumption, or use outside the State pursuant to section 237-29.53(a); and
(10) The use of property, services, or contracting imported by foreign diplomats and consular officials who are holding cards issued or authorized by the United States Department of State granting them an exemption from state taxes.
With regard to purchases made and distributed under the authority of chapter 421, a cooperative association shall be deemed the user thereof.
"Value" means fair and reasonable cash value at the time of accrual of the tax. [L 1965, c 155, pt of §2 and c 201, §40; Supp, §119-1; HRS §238-1; am L 1971, c 4, §6; am L 1974, c 144, §2; am L 1981, c 167, §4; am L 1982, c 204, §8; am L 1983, c 124, §17 and c 167, §4; am L 1985, c 270, §4; gen ch 1985, 1993; am L 1997, c 107, §4; am L 1999, c 70, §4; am L 2000, c 27, §2, c 38, §3, and 198, §7; am L 2001, c 210, §3; am L 2002, c 40, §8; am L 2004, c 114, §2; am L 2013, c 46, §1; am L 2018, c 183, §3; am L 2019, c 2, §3]
The 2018 amendment applies to taxable years beginning after December 31, 2018. L 2018, c 183, §7.
Sale of prepaid telephone calling services, see §237-13.8.
Federal credit union within definition of "purchaser" and immune from tax. Att. Gen. Op. 65-29.
"Value" as the fair and reasonable value may properly include freight charges. 56 H. 621, 547 P.2d 2 (1976).
Under the plain language of this section, Delaware corporation was not subject to the use tax where the sale of books was directly from the corporation to the state library; the corporation did not import the books from an unlicensed seller, nor did it purchase the books and "resell" the goods to the library and thus could not have imported from itself or purchased from itself. 103 H. 359, 82 P.3d 804 (2004).
Where plaintiff: (1) caused consumer electronic goods from various mainland vendors to be shipped to Hawaii in order to restock plaintiff's retail stores in this State, constituting importation of goods into the State for purposes of resale; and (2) used the goods in Hawaii by "keeping the property" in this State "for sale", plaintiff was subject to assessment of the use tax under §238-2. 128 H. 116, 284 P.3d 209 (2012).