Effective January 1, 2007, the general excise and use tax was amended to provide a county surcharge thereby increasing the GET and Use tax rate for transactions attributable to the county. It is targeted for use in the building of a mass transit system in the county where it is implemented. Only the City and County of Honolulu opted to implement the tax. Users can compute the general excise tax, including the county surcharge, if applicable, on Forms G-45 and G-49. The tax is remitted to the Department of Taxation. Funds will be transferred to the county once a month.
If you do business on more than one island, you will need to separate your transactions by taxing districts (Oahu, Maui, Kauai, Hawaii) so that the amounts can be properly reported in Part IV (for any Oahu sales) and Part V (for assignment of taxes by District) of the GE Tax forms G-45 and annual G-49. If you did business in more than one district, you are required to complete and attach Form G-75 to your Forms G-45 and G-49.
If you have questions about the County Surcharge, you may call our Call Center customer service representatives at 808-587-4242 or toll-free from the neighbor islands and continental U.S. at 1-800-222-3229, Monday thru Friday, 7:45 a.m. to 4:30 p.m. (excluding State holidays).
- Tax Announcement 2005-11 Act 247, Session Laws of Hawaii 2005, Relating to County Surcharge on State Tax.
- Tax Announcement 2006-15 General Excise Tax (GET) and County Surcharge Tax (CST) Visibly Passed on to Customers.
- Tax Announcement 2006-17 Relating to the Application of the County Surcharge Sourcing Rules to Cash Basis and Accrual Basis Accounting Method Taxpayers.
- Tax Information Release 2007-01 Relating to the Application of the County Surcharge Sourcing Rules to Real Property Management Companies.
Act 247, SLH 2005 Relating to County Surcharge on State Tax (Act 247) requires the Department of Taxation to promulgate rules addressing in which counties a taxpayer is engaged in business for purposes of imposing the 0.5% county surcharge. New Hawaii Administrative Rules (HAR) section 18-237-8.6, implementing this requirement became effective on December 7, 2006. HAR section 18-237-8 may be viewed by clicking on the following link: HAR section 18-237.
For a short summary of the rules, County Surcharge – Summary.
Taxpayers and Businesses – When Does It Apply?
Oahu Taxpayer (Business)
Neighbor Island (Non-Oahu) Taxpayer (Business)
Any comments or suggestions, please email Tax.Rules.Office@hawaii.gov