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GENERAL EXCISE/USE TAX RETURNS GENERAL INSTRUCTIONS

(NOTE: ALL SECTION REFERENCES ARE TO THE HAWAII REVISED STATUTES UNLESS OTHERWISE NOTED)

(NOTE: References to “married”, “unmarried”, and “spouse” also means “in a civil union”, “not in a civil union”, and “civil union partner”, respectively.)

the nonprofit organization to comply with the

Changes You Should Note

Who Must File

requirements of the GET Protection Act before

z Civil Union - Effective January 1, 2012, pur-

Every person doing business in Hawaii during the

denying any GET benefits. The nonprofit or-

suant to Act 1, Session Laws of Hawaii (SLH)

taxable year must get a GET license and file the

ganization will have 90 days from the date of

2011, civil unions are recognized in Hawaii.

appropriate returns, regardless of how much in-

the receipt of the letter to comply with the re-

Provisions that apply to a husband and wife,

come the business earns, and whether or not the

quirements. For more information on the GET

spouses, or person in a legal marital relation-

business also incurred losses. Every person re-

licensing and reporting requirements for non-

ship shall be deemed to apply to partners in a

ceiving rents from real property owned in Hawaii

profits, see TIR Nos. 2010-05 and 2011-04. If

civil union with the same force and effect as if

is considered to be doing business, and must file

a nonprofit organization conducts fundraising

they were “husband and wife”, “spouses”, or

returns.

activities (e.g., selling barbecued chicken, si-

other terms that describe persons in a legal

lent auctions) or conducts any other business

marital relationship. Accordingly, references

Every person who uses in this State tangible per-

activity that is unrelated to its exempt purpose,

to “married”, “unmarried”, and “spouse” also

sonal property, services, or contracting which are

then the organization is required to have a

means “in a civil union”, “not in a civil union”,

imported into Hawaii, regardless if at the time of

GET license, file GET/Use tax returns, and

and “civil union partner”, respectively.

importation, the property, services, or contracting

pay tax on that income. See Tax Facts Nos.

is owned by the importer, purchased from a seller

z Deduction/Exemption

Suspension

98-3 and 99-4 for more information.

that does not have a GET license, or however

Act 105, SLH 2011, temporarily suspends

acquired, must file a return to report use tax in

certain general excise tax (GET) and use

Resident or Nonresident?

addition to GET.

tax deductions/exemptions from July 1, 2011

Under the General Excise and Use Tax Laws, it

through June 30, 2013.

The suspension

Under the General Excise and Use Tax Laws,

does not matter if you are a resident, nonresident,

means that these amounts are not exempt

“person” means every separate legal entity, even

or part-year resident.

from the GET or use tax and are now subject

though it might not pay net income tax or file a net

to the GET or use tax at the rate of 4%. The

income tax return. For example, although a part-

Filing Frequency

amounts that are subject to the suspension

nership that is doing business does not pay net in-

will continue to be exempt from the 0.5% Oahu

The periodic returns (Form G-45) are used to re-

come tax on the income it earns, the partnership

county surcharge. For more information, see

port gross income, exemptions/deductions, and

(rather than its partners) is required to pay gen-

Department of Taxation Announcement Nos.

tax due on business activities periodically. They

eral excise or use tax. However, if the grantor of a

2011-09, 2011-10, and 2011-22 and Tax Infor-

must be filed throughout the year at specified in-

revocable living trust reports all items of the trust’s

mation Release (TIR) Nos. 2011-01, 2011-02

tervals. The frequency you file depends on the

income on the grantor’s individual net income tax

and 2011-03.

amount of GET your business has to pay during

return, the grantor rather than the trust will report

the year.

z Schedule GE-1 - Any taxpayer who is claim-

and pay GET on the trust’s income. See TIR No.

ing any GET or use tax exemptions/deduc-

z You must file monthly if you will pay more than

94-5 for more information. Furthermore, a hus-

tions for tax years 2010, 2011, and/or 2012 is

band and wife or partners in a civil union may file

$4,000 in GET per year.

required to file Schedule GE-1 online at www.

joint general excise and use tax returns.

z You may file quarterly if you will pay $4,000 or

ehawaii.gov/efile. (Note: Nonprofit organiza-

less in GET per year.

In most circumstances, GET returns do not have

tions who have applied for and received from

z You may file semiannually if you will pay

to be filed by:

the Department of Taxation (“Department”)

$2,000 or less in GET per year.

an exemption from the GET are generally

z Individuals not engaged in business. If an

not required to file Schedule GE-1 unless the

individual’s only business is performing per-

If you are filing quarterly or semiannually and your

nonprofit organization has unrelated trade or

sonal services as an employee under the di-

tax liability is more than the amounts listed above,

business income and has claimed GET or

rection and control of an employer, returns are

you must change your filing period.

use tax exemptions/deductions.)

For more

not required, but an individual who rents out

information, see Department of Taxation An-

real property or performs services as an inde-

To change your filing period, notify the Depart-

nouncement No. 2011-26 and the Schedule

pendent contractor, even as a side business,

ment by filing Form GEW-TA-RV-5, General Ex-

GE-1 Instructions.

must report and pay tax on that income.

cise/Use, Employer’s Withholding, Transient Ac-

z Effective July 1, 2010, certain GET/Use tax

commodations and Rental Motor Vehicle & Tour

z Financial institutions. A financial institution

benefits may be denied to taxpayers that fail to

Vehicle Surcharge Application Changes.

that is subject to the Franchise Tax Law (Chap-

comply with the requirements of the GET Pro-

ter 241, Hawaii Revised Statutes (HRS)), and

What Forms to File

tection Act (Act 155, SLH 2010). Taxpayers

that earns only income that is taxable under

who were previously not required to file GET/

that law, only needs to file a franchise tax re-

All filers must file periodic returns (Form G-45)

Use tax returns and/or exempt from reporting

turn. See section 237-24.8 for more informa-

throughout the year, and an annual return and

certain exemptions/deductions may now be

tion.

reconciliation (Form G-49). You must also file

required to file GET/Use tax returns and/or re-

Schedule GE (Form G-45/G-49) if you are claim-

z Public utilities owned and operated by the

port certain exemptions/deductions. See the

ing exemptions/deductions, and/or Form G-75 if

State or a political subdivision of it, or public

schedules of exemptions and deductions con-

you conducted business in more than one tax dis-

service companies subject to the Public Ser-

tained in these instructions for more informa-

trict. Please see the applicable sections below for

vice Company Tax Law (Chapter 239, HRS).

tion. In addition, an individual involved in the

more information.

If, however, a public service company receives

financial management of a taxpayer such as

income from directory advertising, interest in-

an officer, member, manager, or other respon-

Form G-45 - All filers must file periodic returns

come, or income not included in the measure

sible person may be held personally liable for

based on their filing frequency. A monthly filer

of the tax imposed by Chapter 239, HRS, GET

any unpaid GET/Use tax where the individual

must file a Form G-45 every month, a quarterly

returns must be filed to report and pay tax on

person willfully fails to pay over those amounts

filer must file a return for each quarter, and a

those amounts.

to the State. For more information, see TIR

semiannual filer must file a return for each semi-

z Insurance companies subject to the insurance

No. 2010-05.

annual period.

premiums tax (sections 431:7-201 to 431:7-

z Effective July 1, 2012 (Act 219, SLH 2012),

You must file a Form G-45 even if you do not have

205). If, however, an insurance company re-

the director must first give written notice to

any gross income to report for the period. Just

ceives rents from investments in Hawaii real

the nonprofit organization to comply with the

write a zero (0) in each column of your main busi-

property, GET returns must be filed to report

requirements of the GET Protection Act be-

ness activity and also on the “Total Taxes Due”

and pay tax on that income. See section 237-

fore denying any GET benefits. The nonprofit

line.

If your business activity has temporarily

29.7 for more information.

organization will have 90 days from the date

stopped, you may submit a written request to the

z Certain nonprofit organizations. However, oth-

of the receipt of the letter to comply with the

Department to temporarily change the status of

requirements.

er nonprofit organizations that were previously

your license to inactive for up to 2 years. You must

not required to file GET/Use tax returns and/

continue to file Form G-49 for each taxable year;

The General Excise Tax

or exempt from reporting certain exemptions/

however, it is not necessary to file Form G-45

deductions may now be required to file GET/

The GET is a privilege tax imposed on business

while your license is inactive.

Use tax returns and/or report certain exemp-

activity in the State of Hawaii. The tax is imposed

tions/deductions. Effective July 1, 2010, any

Form G-49 - All filers must file an annual return

on the gross income received by the person en-

nonprofit organization who is required to ob-

and reconciliation (Form G-49) after the close of

gaging in the business activity. Activities subject

tain a GET license and fails to do so or who

the taxable year. Form G-49 is a summary of your

to the tax include wholesaling, retailing, farming,

has a license and fails to file Form G-49 within

activity for the entire year. This return must be

services, construction contracting, rental of per-

12 months of the prescribed due date may be

filed in addition to Form G-45.

sonal or real property, business interest income,

denied GET benefits, such as exemptions, de-

and royalties. This is not a complete list of activi-

ductions, or lower tax rates (section 237-9.3).

Schedule GE (Form G-45/G-49) - If you are

ties subject to the GET.

The director must first give written notice to

claiming exemptions/deductions on Forms G-45

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General Instructions For Filing The General Excise/use Tax Returns - Hawaii Department Of Taxation Page 2

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