09-04-2018, 12:03 AM
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)."
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)."