On Friday, July 19, 2019 at 11:59:49 AM UTC-10,
meri...@gmail.com wrote:
On Thursday, January 7, 1999 at 12:00:00 AM UTC-8, Katie Jaques wrote:
Hawai'i does not have a sales tax. Instead there is a gross
receipts tax, called the General Excise Tax, at 4%, except
for some transactions (mainly at the wholesale level) which
are taxed at 0.5%. Retail sales businesses are allowed to
"breakout" the GET on bills / invoices, where it appears as
a 4.16% tax (since, again, it is on the gross receipts).
There have been estimates that the effective rate at the
retail level is as high as 13%. There is also a use tax on
imported goods and services. I do not recommend the Hawai'i
system.
New Mexico has a hybrid system that is somewhat similar to
Hawaii's. In both states, the tax is a gross receipts tax
imposed on the seller; however, the seller is authorized to
collect it from the buyer. And in both states, there is a
compensating use tax.
From the consumer's point of view, the Hawaii and New Mexico
systems are not enough different from conventional sales/use
tax systems to classify those states as not imposing
sales/use taxes. Usually they are just lumped in with the
others. However, you are right, from the seller's point of
view they are quite different.
Katie in San Diego
The foregoing is intended for educational purposes only and
does not constitute legal or professional advice. The views
expressed herein are those of the writer and are not
expressed on behalf of her employer.
Katie, states like Hawaii may choose not to have a sales tax because the costs of goods that have to be imported and can't be made locally (nearly everything) is going to be high because of the cost of transport are much higher for every item and
neither manufacturing or trading are major sources of revenue. Airport landing tax paid by travellers is a thing. Hotel tax is a thing. Tourism is the main source of revenue. Nevada can get money paid again by tourists and gambling. Alaska by timber,
petroleum and gold industries. People who put themselves forth as experts on a subject really should be a bit better than they are in this thread. These things are obvious to some, but apparently not to all. A sales tax should only be leveled against the
end user, as someone has already said. People seem to have holes in their learning through some breakdown, somewhere along the way between when they are born and they put out their shingle as a paid expert/consultant/professional. Perhaps it is only
required just enoug
h
to fool enough people to thinking you know what you're talking about, but you merely need to know more than the person paying you, to simplify things; I mean this in general, not to any specific person in this thread, to avoid conflict. Liberal
educations and critical thinking are not what they used to be, now liberal just mean you want to give other peoples' money away.
I live in hawaii and noticed when i bought one item from autozone they charged me a ge tax twice for that one iten exact same tax twice ?
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