Hawai’i Ban on Shipping
- Thread starter Akoni808
- Start date
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I found information on Act 62.
ag.hawaii.gov
245 (b) states;
This section shall not apply to the shipment of tobacco products if any of the following conditions are met.
Electronic Smoking Device Retailer Registration Unit
Electronic Smoking Device Retailer Registration Unit THIS UNIT IS CLOSED AS OF JULY 1, 2023 PURSUANT TO ACT 62 (2023) NOTICE OF NEW LAW EFFECTIVE JULY 1, 2023 On June 6, 2023, Governor Josh Green signed into law Act 62, Session Laws of Hawaii 2023 (from Senate Bill 975, Relating to Health). The...
ag.hawaii.gov
245 (b) states;
This section shall not apply to the shipment of tobacco products if any of the following conditions are met.
On the link from the Electronic Smoking Device Retailer Registration Unit I posted above, I called them, and they told me to speak with the Taxation Office.
This is the Hawaii Taxation Department’s telephone number and website.
https://hitax.hawaii.gov/_/
(808) 587-4242 - Prompt #4
The Hawaii Taxation Department told me, for any online retailer in the USA, even without a physical location, to apply for a GE License for an Out of State Online Retailer.
I was told, yes, any business in any state with a Hawaii GE License can now legally ship to Hawaii!
This is the Hawaii Taxation Department’s telephone number and website.
https://hitax.hawaii.gov/_/
(808) 587-4242 - Prompt #4
The Hawaii Taxation Department told me, for any online retailer in the USA, even without a physical location, to apply for a GE License for an Out of State Online Retailer.
I was told, yes, any business in any state with a Hawaii GE License can now legally ship to Hawaii!
So does SP already have one or are they getting one?On the link from the Electronic Smoking Device Retailer Registration Unit I posted above, I called them, and they told me to speak with the Taxation Office.
This is the Hawaii Taxation Department’s telephone number and website.
https://hitax.hawaii.gov/_/
(808) 587-4242 - Prompt #4
The Hawaii Taxation Department told me, for any online retailer in the USA, even without a physical location, to apply for a GE License for an Out of State Online Retailer.
I was told, yes, any business in any state with a Hawaii GE License can now legally ship to Hawaii!
They replied to me in an email thinking the law is in regards to Local Retail businesses, and that they can’t ship to Hawaii, and I explained that the law was created for online sales, not local, and out of state retail businesses with a Hawaii GE can.
I’m going to call them and try speak with someone tomorrow over this.
I’ll also call the Governor’s office to confirm what Tax Department is saying.
I just got off the phone today, and spoke to one of the heads of the Tax Department.
Fact, tobacco is not illegal to ship to Hawaii.
A business in the Continental USA, needs a GE & Tobacco License.
GE is $20 a year and Tobacco License $50 a year.
Also, a consumer can file a yearly M110 form, and pay the taxes on their end. If a consumer files the M110, then a business does not have to get a GE and Tax License if they want to leave it up to consumers.
Fact, tobacco is not illegal to ship to Hawaii.
A business in the Continental USA, needs a GE & Tobacco License.
GE is $20 a year and Tobacco License $50 a year.
Also, a consumer can file a yearly M110 form, and pay the taxes on their end. If a consumer files the M110, then a business does not have to get a GE and Tax License if they want to leave it up to consumers.
Loveeeeeee it! Well done on your research. Looks like we won’t be forgiving you if you steal the box pass
Loveeeeeee it! Well done on your research. Looks like we won’t be forgiving you if you steal the box pass
There is still one thing confusing.
The Tax Department today told me $20 for the GE and $50 for the Tobacco License, but there is this FAQ the government made, and it says ‘Tobacco License Fee’ $250 that no one mentioned.
It says Wholesalers and Dealers of ESDs and e-liquids, so I’m not sure if this is only for them, and not a tobacco only business. hmm
Either way, all the shops in the USA only need a GE, and whatever the Tobacco license comes to.
Or, as I mentioned consumers can show the shops an M110 form and tell the shops they will cover the tax, so the businesses don’t need a GE or Tobacco license.
I personally don’t want to bother doing the M110.
The actual taxes on tobacco products I was told has not changed, so this is not suppose to be a tax grab, because the only thing that changes, is just now paying to get a GE and Tobacco license and be registered with the state like any B&M does already in any state.
Hawaii claims there is a serious problem with vaping among under age kids.
So the reality might also be, this was the fastest way for Hawaii to put something in place to keep some sort of checks and balances on the businesses that can ship to Hawaii.
No GE and Tobacco license you can’t legally ship, and supposedly this helps.
Now that Act 62 is in place, anyone can certainly call the state to get information on all of this, rather than sit, wonder and guess.
So since you’re now a tobacco tax expert, can you tell me what I have to do to send tobacco to friends in Hawai’i without them getting in trouble?
LOL
Good question, I’ve only been talking to the state about online retailers. I will ask about this too, and see what they say.
Ok, I’ve talked to quite a number of people at the state on this.
The Tax angle, is because, in the past, there was no tax law for Vape products in the state, so a lot of companies were flying under the radar illegally selling vape products to minors.
Now Hawaii is saying the taxing for this, is also suppose to be the money needed by law enforcement to police this, supposedly the reason for taxing, also the fact vape products were never taxed before in Hawaii.
Act 62 is really about now taxing vape products that were never added before into law in Hawaii.
But, in this process, of now adding vape products into the tax law, Hawaii wants to make sure all retail and wholesale businesses of tobacco products, are also paying a GE and tobacco license and fees.
Hawaii stated to me, the cost on taxes for tobacco products has not changed for what companies are suppose to of been paying already in the past on their taxes.
The only thing that changes now, is that you are now registered in the state of Hawaii to do business, and the only cost differences is paying the GE and tobacco license and fees, but as far as the tax on tobacco products, Hawaii stated to me, this hasn’t changed.
So, to start business to legally sell/ship as a retailer to Hawaii consumers this is what’s needed.
1. $20 yearly GE License - Additional yearly GE fees may or may not be needed depending on the volume of sales.
2. $50 yearly Tobacco license
3. $250 yearly Tobacco license fee
4. M19 form to pay the yearly tobacco taxes
For consumers, wishing to send and receive tobacco interisland or from the Continental USA, if these are sent as Gifts, it is legal to send and receive tobacco products.
Wholesalers shipping to Hawaii have an additional wholesaler license/fee and form.
P.S. Ok, this is suppose to be it now!
The Tax angle, is because, in the past, there was no tax law for Vape products in the state, so a lot of companies were flying under the radar illegally selling vape products to minors.
Now Hawaii is saying the taxing for this, is also suppose to be the money needed by law enforcement to police this, supposedly the reason for taxing, also the fact vape products were never taxed before in Hawaii.
Act 62 is really about now taxing vape products that were never added before into law in Hawaii.
But, in this process, of now adding vape products into the tax law, Hawaii wants to make sure all retail and wholesale businesses of tobacco products, are also paying a GE and tobacco license and fees.
Hawaii stated to me, the cost on taxes for tobacco products has not changed for what companies are suppose to of been paying already in the past on their taxes.
The only thing that changes now, is that you are now registered in the state of Hawaii to do business, and the only cost differences is paying the GE and tobacco license and fees, but as far as the tax on tobacco products, Hawaii stated to me, this hasn’t changed.
So, to start business to legally sell/ship as a retailer to Hawaii consumers this is what’s needed.
1. $20 yearly GE License - Additional yearly GE fees may or may not be needed depending on the volume of sales.
2. $50 yearly Tobacco license
3. $250 yearly Tobacco license fee
4. M19 form to pay the yearly tobacco taxes
For consumers, wishing to send and receive tobacco interisland or from the Continental USA, if these are sent as Gifts, it is legal to send and receive tobacco products.
Wholesalers shipping to Hawaii have an additional wholesaler license/fee and form.
P.S. Ok, this is suppose to be it now!
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Well, it would significantly change you now paying the excise tax. Unless I’m mistaken, it seems like you were currently not paying state excise tax on mail order tobacco products. This stops that so you will see a new 70% excise tax for loose tobacco on your purchases for a vendor who registers.
Is that accurate that you currently don’t pay excise on your online purchases?
Is that accurate that you currently don’t pay excise on your online purchases?
I personally don’t know what taxes an online vendor in the Continental USA had to pay to a state they do business with in the past.
I always assumed as a consumer, if we bought tobacco online, from a business in California and we lived in New York, where the products were being shipped, the sales tax we saw, paid for all these taxes in the past.
Hawaii stated, their taxes on tobacco products has not changed.
They stated the only thing that changes here, is that an online business in the Continental USA, now has to have the same types of licenses that a local business does, with the excpetion of paying the additional Tobacco license fee of $250 yearly, otherwise it’s suppose to be the same as a local business.
So I really don’t know, if this does mean now an online business actually pays more taxes.
I just know if you are a local business you pay all these already, minus not paying the $250 Tobacco license fee.
I always assumed as a consumer, if we bought tobacco online, from a business in California and we lived in New York, where the products were being shipped, the sales tax we saw, paid for all these taxes in the past.
Hawaii stated, their taxes on tobacco products has not changed.
They stated the only thing that changes here, is that an online business in the Continental USA, now has to have the same types of licenses that a local business does, with the excpetion of paying the additional Tobacco license fee of $250 yearly, otherwise it’s suppose to be the same as a local business.
So I really don’t know, if this does mean now an online business actually pays more taxes.
I just know if you are a local business you pay all these already, minus not paying the $250 Tobacco license fee.
Yes as I mentioned at #1;
$20 yearly GE License - Additional yearly GE fees may or may not be needed depending on the volume of sales.
The additional fees, are like if you do over $100,000 or either 200 transactions a year to Hawaii, then there are additional GE taxes.
So I don’t know if this now means GE taxes an online business in the Continental USA would now be paying additional on, they never paid before.
$20 yearly GE License - Additional yearly GE fees may or may not be needed depending on the volume of sales.
The additional fees, are like if you do over $100,000 or either 200 transactions a year to Hawaii, then there are additional GE taxes.
So I don’t know if this now means GE taxes an online business in the Continental USA would now be paying additional on, they never paid before.
In most states, people ordering online don't pay the excise tax if the company isn't in your state. It's a reason why online purchases are often cheaper than your local B&M (and also a reason why a B&M may complain about online ordering because it's tough to compete).
If you currently buy a 2oz tin of Union Square of Smoking Pipes for $12.96 and you only pay the state sales tax on checkout, you are not paying the 70% Hawaii tobacco excise tax compared to if you bought the same 2oz tin at a B&M locally who has to charge it. The excise tax is an additional, special tax on top of the sales tax specifically for the type of tobacco you are purchasing. Every state is different on what they charge for the different types of tobacco.
If you currently buy a 2oz tin of Union Square of Smoking Pipes for $12.96 and you only pay the state sales tax on checkout, you are not paying the 70% Hawaii tobacco excise tax compared to if you bought the same 2oz tin at a B&M locally who has to charge it. The excise tax is an additional, special tax on top of the sales tax specifically for the type of tobacco you are purchasing. Every state is different on what they charge for the different types of tobacco.
I forgot to mention, a vendor does not have do do any of this in 1-4 I outlined.
Consumers in Hawaii, can file a yearly M110 form and pay the taxes in the purchases they made.
So this would now be up to the vendors to trust a consumer files and pays on their yearly M110.
Consumers in Hawaii, can file a yearly M110 form and pay the taxes in the purchases they made.
So this would now be up to the vendors to trust a consumer files and pays on their yearly M110.