Rep. Choy Attempts Creative Web Tax, Again

Replies to This Discussion

Permalink Reply by Ryan Esaki on April 13, 2011 at 10:13am

This is rather infuriating. If this bill passes its just one more thing that discourage new startups from being created in Hawaii. Shouldn't the state be encourages businesses that bring money INTO the state (aka out of state online sales)?

Permalink Reply by Cameron Souza on April 13, 2011 at 1:27pm

Dan & Ryan - I agree. This is infuriating. I thought Sen. Fukunaga and Rep. McKelvey were pro-tech. Why are they supporting these bills? >:-(

Permalink Reply by Ryan Esaki on April 13, 2011 at 2:17pm

I think I may have originally misread the article. I originally thought the state was looking to tax local businesses for selling out of state. On reread they want to tax retailers selling to Hawaii. Apologies for not reading more carefully, still don't like it though.

Permalink Reply by Daniel Leuck on April 13, 2011 at 3:03pm

@Ryan Correct. The affiliate tax bill, which was resurrected this year after a veto from Lingle last year, affects Hawaii based affiliates. The internet transaction tax is an extension of Hawaii's insidious general excise tax that affects anyone who purchases goods or services via the internet from out of state vendors (of course, this has always applied to purchases from in-state vendors.) This still affects businesses because many of them do procurement online. If there are multiple steps in your supply chain that are within Hawaii the tax is compounded. They are both very bad ideas that will hurt Hawaii's businesses and make us less competitive. I hope voters let Rep. Choy know their feelings about his creative and constitutionally dubious taxation schemes the next time he is up for reelection.

From the Advertiser: Hawaii followed New York's example with a similar bill in 2009, prompting Amazon.com and Overstock.com to cancel affiliate marketing agreements with websites in the islands.

Then-Gov. Linda Lingle vetoed the bill, and both online retailers restored the local partnerships. Lingle also vetoed a Streamlined Sales Tax Proj­ect bill. Lawmakers chose not to override the vetoes.

"We have a problem. We're losing too much revenue," Choy said of the uncollected taxes. "It's going to grow. We have to keep making these attempts."

...or, Mr. Choy, you could just stop spending obscene amounts of money on the most bloated and inefficient state government in the union. Then you wouldn't have to spend your days cooking up exotic tax schemes.

Permalink Reply by Ryan Esaki on April 13, 2011 at 7:26pm

@Daniel

Totally agree, where does the line get drawn? Will our hosting providers be taxed for having us as clients? Tax amazon for AWS? What about digital goods?

Permalink Reply by Peter Kay on April 13, 2011 at 8:35pm

Don't get me started, Dan!  This is what we get when we elect representatives that simply do not share our values. Mr. Choy was hostile to Act 221 and the tech community did something just north of ZERO to support an opposing candidate in the 2010 elections. Until we (that is, the tech guys that care about a future in Hawaii) get mad enough to get into action and create a viable loyal opposition, be ye all prepared for more of the same.

 

On a "what to do about it" note, I would suggest that those involved w/ either Brian Schatz or Neil Abercrombie's campaign contact their office to see if that their support of the tech industry now will be as enthusiastic as it was when they were campaigning.

 

Finally, if any are as concerned as I am (i.e. willing to actually do something about it) on broader political issues facing Hawaii and believes in liberty and limited government (i.e. you are ideologically Right of Center), please message me directly; I am organizing a group of Geeks and need a few more.

Permalink Reply by Daniel Leuck on April 13, 2011 at 9:48pm

Mr. Choy was hostile to Act 221 and the tech community did something just north of ZERO to support an opposing candidate in the 2010 elections. Until we (that is, the tech guys that care about a future in Hawaii) get mad enough to get into action and create a viable loyal opposition, be ye all prepared for more of the same.

True. I'm guilty of that, but I won't make the same mistake twice.

 

On a "what to do about it" note, I would suggest that those involved w/ either Brian Schatz or Neil Abercrombie's campaign contact their office to see if that their support of the tech industry now will be as enthusiastic as it was when they were campaigning.

I plan to write to both of them. To Brian's credit, he has a good record in terms of support for the tech industry.

Permalink Reply by Peter Kay on April 13, 2011 at 9:59pm

I just pulled my popcorn out of the microwave and am watching the show. Do report back on Brian's response. Tax/Budget issues are the ultimate moments of truth where the rubber meets the road.

Permalink Reply by Timothy Little on April 13, 2011 at 10:58pm

Peter, 

 

Count me in -- I definitely qualify as a geek and am certainly in agreement on the limited government idea.  I'm sick that the entire state and federal government are incapable of doing the same thing that ordinary Americans have to do -- live within their means.  Like Dan mentioned above, if revenues are too low then its time to stop spending. Is it really necessary to try to squeeze more revenue from the taxpayers when spending is still going up?  Put the checkbook away for a while and pay the bills you have.

 

Like many others I've sat on the sideline for too long because its such a forgone conclusion that Hawaii is essentially a one-party state.  It is time to challenge that and have a government that is responsive to the concerns of its constituents.

Peter Kay said:

Don't get me started, Dan!  This is what we get when we elect representatives that simply do not share our values. Mr. Choy was hostile to Act 221 and the tech community did something just north of ZERO to support an opposing candidate in the 2010 elections. Until we (that is, the tech guys that care about a future in Hawaii) get mad enough to get into action and create a viable loyal opposition, be ye all prepared for more of the same.

 

On a "what to do about it" note, I would suggest that those involved w/ either Brian Schatz or Neil Abercrombie's campaign contact their office to see if that their support of the tech industry now will be as enthusiastic as it was when they were campaigning.

 

Finally, if any are as concerned as I am (i.e. willing to actually do something about it) on broader political issues facing Hawaii and believes in liberty and limited government (i.e. you are ideologically Right of Center), please message me directly; I am organizing a group of Geeks and need a few more.

Permalink Reply by John on May 9, 2011 at 11:20am

on a related note, i just bought an ebook from informit.com, they charged Hawaii GET: $9.99 for the book, $0.45 for the tax. That surprised me as they don't seem to have any physical presence in Hawaii nor do I recalling other online vendors charging Hawaii GET/tax. Anyone with similar experiences?

Permalink Reply by David Lassner on May 9, 2011 at 5:12pm

Warning: I am not an accountant, especially not yours or Informit's.

The requirement to pay GET is associated with establishing a "locus" within the State of Hawaii.  That is typically an office or an employee or an outlet.  Informit is part of Pearson, a mega-player in educational "stuff."  Pearson may well have employees here, e.g., to sell textbooks to schools.

 

Permalink Reply by John on May 9, 2011 at 5:13pm

Makes sense. Thanks!