- Sales of tangible personal property delivered in Hawaii
- Services used or consumed in Hawaii
- Intangible property used in Hawaii
- All qualifying gross income counts toward the threshold, including exempt transactions
- Services between related entities with 80%+ common ownership are generally excluded from GET liability
- Sales through a registered marketplace facilitator may shift the GET obligation to the facilitator, removing it from the business's behalf
Affiliate Nexus
Hawaii has no standalone affiliate nexus statute, but an out-of-state retailer whose affiliated company maintains physical locations in Hawaii is subject to GET on its Hawaii sales under DOTAX letter rulings. The broad statutory definition of "representative" encompasses any salesperson, commission agent, manufacturer's representative, or broker assisting a seller in the state, even on an intermittent basis. As a result, when an affiliated in-state entity carries out market-facing activities on an out-of-state seller's behalf, that activity triggers GET exposure for the out-of-state seller on its Hawaii-sourced gross income.
Physical Nexus
Physical nexus in Hawaii arises under HRS § 237-2 and HRS § 237-1 when a business has employees or representatives operating in the state, including on an intermittent basis. Ownership or storage of property or inventory located in Hawaii independently establishes nexus. Business activities that are performable only within Hawaii, such as in-state services or the leasing of Hawaii telecast rights, also create nexus. In-state repair or technical services are confirmed to establish physical presence under DOTAX administrative guidance.
Trailing Nexus
Hawaii has no explicitly codified trailing nexus policy. The "current or immediately preceding calendar year" evaluation structure of the economic nexus statute produces an implicit one-year carry-forward: meeting the threshold in one year sustains GET obligations through the entirety of the following year, even if activity falls below the threshold during that year. Nexus lapses only when the seller fails the threshold test in both the current and preceding year simultaneously.
