Legislators should kill bill aimed at adding Hawaii tax to Internet buys


POSTED: Thursday, April 16, 2009

House Bill 1405, which would force Internet shoppers to pay Hawaii taxes, is moving through the state Legislature. It's a bad idea.

Why propose a tax on businesses that have no physical presence in the state? The practice of taxing this type of activity has been found unconstitutional by the Supreme Court.

Equally worrisome is the signal it will give businesses outside Hawaii. That, yet again, it's simply not wise to do business in this state.

In written testimony dated March 19, Paul Misener, Amazon.com vice president for global policy, noted that should this bill pass, Amazon.com will simply stop doing business with Hawaii-based participants in the Amazon “;Associates Program.”;