Talk about adding insult to injury...

[kalakoa]

there is actually a "tax" on the tax

GET is 4% of your gross receipts. If you "pass it through", you now have to collect 4% on that 4%, which should tell you everything you need to know about doing business here.

[terracore]

"[Slightly modified for clarity] "Because the state considers the tax you collected to be income too, so you will pay a tax on that tax you collect (confusing right?). Paying 4.5% tax on the 4.5% tax actually equals 4.7025%, but the state allows you to round up a bit and you end up with a GET rate of 4.712% of the sale amount. Most businesses force customers to pay the excise tax and then the excise tax on the excise tax, so you’ll see 4.712% on your bill, not 4.5%. On outer islands (no .5% Oahu surcharge), this means a GET rate of 4.166%. Most businesses do this because it’s common and it means that they won’t have to pay GET out of their pocket, as the customers paid it already."

http://www.ronswebsite.com/blog/hawa...al-excise-tax/ "

http://punaweb.org/Forum/topic.asp?TOPIC_ID=22036

[Punatic007]

quote:

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Originally posted by kalakoa

there is actually a "tax" on the tax

GET is 4% of your gross receipts. If you "pass it through", you now have to collect 4% on that 4%, which should tell you everything you need to know about doing business here.

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Same with TAT transient accommodation tax. Both are charged on vacation rentals, if you include in your nightly rate, which most all guests ask "why don't you do that, just include it?" you pay 14.4% of the 14.4% due as well. That adds up quickly.

[BillyB]

FYI the State is not exempt from GET. If you contract with the State, (or County) you should collect the tax. How stupid is that? What is the cost of collecting taxes from yourself?
Prescription drugs are no longer taxed. Federal Government is exempt.