Talk about adding insult to injury...

[EightFingers]

Just found out the state charges sales tax on ambulance service.
Insurance won’t pay it so it’s on you. You still have to pay sales tax even if insurance is paying for the ambulance service.
This tax usually ends up between $150 and $180.

[kalakoa]

the state charges sales tax on ambulance service

It's not a "sales tax", and it's also levied on medication, doctor visits, groceries, etc.

Just another Hawaiian Screw...

[EightFingers]

I’ve never had to pay tax on doctor visits, just the copay and whatever my insurance doesn’t pay for. No tax on lab work either.
No tax charge on dentist or eye doctor visits either.

Yes, I slipped up, it’s an “excise” tax.

[kalakoa]

never had to pay tax on doctor visits

Depends on the doctor. Entirely possible that some are "visibly passing" the tax but not paying the State.

Groceries really shouldn't be taxed.

[Carey]

All profit business (& many NP business transactions) in Hawaii must, legally, pay GET (general excise tax) taxes on monies brought in. The business pays the tax, not on "sales" but on monies paid to the business (sales, rents, fees, fundraisers, bazaars, rummage sales, etc all require GET). Some tack it on as a "sales tax" on their billing, others incorporate the GET into their bill (as they do all of the other cost-of-running-business expenses...)
There are some advantages to each strategy, both for ease of accounting & for more "normal sales" receipts.... but no matter how they bill, they legally must pay the GET...

Perhaps this is the only avenue that you have to check, if the ambulance was covered under this provision: ( http://files.hawaii.gov/tax/legal/taxfac...5-37-1.pdf )
"Are businesses required to charge GET?
No. It is common for businesses to charge their customers GET by visibly passing it on, but it is not required by law. Businesses must pay GET whether or not they charge their customers for it.
In certain circumstances, the law prohibits businesses from charging additional fees or amounts including GET. For example, section 431:10-218, Hawaii Revised Statutes (HRS), prohibits insurers or their agents from charging additional fees, including GET, for insurance premiums. Businesses may also be prohibited from charging GET when prices are fixed under the law. For example, towing companies cannot charge GET if it causes the total cost to exceed the maximum amount allowed under section 290-11, HRS. For more information, call the Department of Commerce and Consumer Affairs’ Office of Consumer Protection at (808) 586-2630."

From Hawaii State Dept of Tax.: http://tax.hawaii.gov/geninfo/get/
"What is Hawaii’s sales tax rate?

Hawaii does not have a sales tax; instead, we have the GET, which is assessed on all business activities. The tax rate is .15% for Insurance Commission, .50% for Wholesaling, Manufacturing, Producing, Wholesale Services, and Use Tax on Imports For Resale, and 4% for all others. For differences between the GET and sales tax, please see Tax Facts 37-1, General Excise Tax (GET).

If your business activity is taxed at the 4% rate and is conducting business on Oahu, you are also subject to the .50% Oahu County Surcharge Tax. For more information regarding the Oahu County Surcharge Tax, see County Surcharge."

"Are we allowed to pass on the business tax to the customer?

Yes, but you must remember the tax is on the business and not on the customer."

For NP status ( http://files.hawaii.gov/tax/legal/taxfacts/tf98-3.pdf ):
"If granted the exemption, is all the income we receive exempt from GET?
It depends. Amounts received as dues, donations, or gifts are not included in gross income subject to GET. However, gross receipts from any activity in which the primary purpose is to produce income is subject to GET, even if used to fund your exempt purposes. Gross income received from any fundraising activity is subject to GET. Other income may be exempt from GET depending on if the activity is related to your exempt purpose (see question 10)."

[jrw]

My doctor puts it on her bill insurance does not pay it and they eat it I haven't ever had to pay it. But I am sure if you had no insurance you would be paying it. What a shame.

jrw

[macuu222]

Hawaii is the only state in the nation that taxes medical charges! And yes some doctors do incorporate the tax into the medical procedure. But I found that mostly in Honolulu...not here. If my wife gets a MRI here...the insurance won't pay for the $100.00 in taxes Imagine the tax if your operated on for heart surgery which could cost up to half a million dollars. The tax alone could bankrupt you. That's why so many people go to the mainland (when they can) for major surgery. I guess some insurances do pay the tax on medical here, but not mine (Aetna)

[HereOnThePrimalEdge]

you must remember the tax is on the business and not on the customer."

Instructor: Welcome to UHH Econ 101 - Introduction to Economics in Hawaii, Fall Semester 2018. Your outline for this term includes:

1) Hawaii State Excise Tax - The tax is on the business and not on the customer.
2) Hawaii Businesses - The cost of inventory and overhead is on the business, not on the customer. The business can choose whether to pass that cost on to the customer, or not.

Student: But... wouldn't a store or company go out of business if they didn't pass the cost of inventory, overhead, even the taxes they pay, on to their customers?

Instructor: Yes, but it's still their choice to charge the customer a fee or price, or give their product or services away for free. Understand? That's why it's called the Free Market system. And why the State of Hawaii does NOT charge residents a tax, instead "the (Excise) tax is on the business and not on the customer."

Now, moving on...

[kalakoa]

we have the GET, which is assessed on all business activities

Elsewhere in the TF it is explained: the GET is a tax for the privilege of doing business in Hawaii, which posture speaks volumes.

It is common for businesses to charge their customers GET by visibly passing it on

This is where I point out that: business is not required to "visibly pass" the GET -- they can simply pay the 4% out of their receipts, and adjust prices accordingly. This has two side effects:

1. For cash transactions, no more counting pennies out of the drawer: faster, more accurate service.
2. Where insurance is involved, they don't get to decline the GET portion of the charges, because there isn't one.

Unfortunately, it seems that everything in Hawaii -- right down to GET collection -- must be done in the most complicated, inconvenient, and inefficient way possible, thereby maximizing both employment and government intrusion.

[EightFingers]

“Yes, but you must remember the tax is on the business and not on the customer.”

Not at all. Where do you think businesses get their money?
Sure, the business is responsible for paying the tax to the state, but that tax is ultimately paid by the customer.
I also remember somewhere there is actually a “tax” on the tax. That’s why you sometimes see the 4.16% charged.