Comments on: Update on Hawaii HB1405

By: Arguments Against CA’s New Sales Tax Bill Targeting Affilaite Marketers | R3R Internet Marketing & Consulting

Fri, 27 Mar 2009 18:30:52 +0000

[...] Yes, currently Hawaii, Connecticut, Tennessee, and Minnesota are also considering bills. Hawaii had a hearing yesterday and the bill passed in committee [...]

By: Ben

Ben — Wed, 25 Mar 2009 16:06:58 +0000

if you’re an Affiliate marketer and your revenue comes from an adnetwork(CX digital, Neverblue, etc) located in another state you probably aren’t subject to the tax anyway. its the merchant selling physical goods to hawaii customers that would have to pay in the current form of legislation. you can claim an exemption from the GET because you’re exporting services outside the state of hawaii. i could be wrong. not a tax lawyer. but its something to investigate. i believe if you can file a form G-61 export exemption certificate for general excise and liquor taxes to get around this.

By: Ben

Ben — Wed, 25 Mar 2009 15:44:03 +0000

after reading HB 1405…couldnt affiliates driving revenue from CPA offers geotarget around hawaii and thus escape taxation from this bill? you’d have to be able to prove that none of the customers were from hawaii if taken to tax court. maybe in theory you could avoid taxation but as with public policy you’ll never really know until you or someone else goes to court. i will discuss this with a hawaii tax attorney and see what he says.