HRS § 237-4.5 — Marketplace facilitators


HRS
[§237-4.5] Marketplace facilitators.
(a) A marketplace facilitator shall be deemed the seller of tangible personal
property, intangible property, or services and the seller on whose behalf the
sale is made shall be deemed to be making a sale at wholesale pursuant to
section 237-4.
(b) For purposes of section 237-3, a
marketplace facilitator's gross income or gross proceeds of sale include
receipts from sales on behalf of other sellers under subsection (a).
(c) Any person other than a marketplace
facilitator who provides a forum, whether physical or electronic, in which
sellers list or advertise tangible personal property, intangible property, or
services for sale and takes or processes sales orders shall:
(1) Post a conspicuous notice on its forum that
informs purchasers intending to purchase tangible personal property, intangible
property, or services for delivery to or use at a location in this State that
the purchaser is required to pay use tax if the sale is made from an unlicensed
seller;
(2) Provide a written notice to each purchaser at the
time of each sale of tangible personal property, intangible property, or
services for delivery to or use at a location in this State that the purchaser
may be required to remit use tax directly to the department and provide
instructions for obtaining additional information from the department on
whether and how to remit use tax to the department; and
(3) No later than the twentieth day of the fourth
month following the close of the taxable year, submit a report to the
department that includes, with respect to each purchaser of tangible personal
property, intangible property, or services delivered to or used at a location
in this State, all of the following:
(A) The purchaser's name, billing address,
and mailing address;
(B) If the sale involved the purchase of
tangible personal property, the address in this State to which the tangible
personal property was delivered to the purchaser;
(C) The aggregate dollar amount of the
purchaser's purchases from the seller; and
(D) The name and address of the seller that
made the sale to the purchaser;
provided that the person, in lieu of complying with
the notice and reporting requirements in this subsection, may elect to be
deemed the seller of tangible personal property, intangible property, or
services as provided in subsection (a).
(d) Any person who fails to comply with
subsection (c) and has not elected to be deemed the seller of tangible personal
property, intangible property, or services unless it is shown that the failure
is due to reasonable cause and not due to neglect, shall be assessed a penalty
of $1,000 if the failure is for not more than one month, with an additional
$1,000 for each additional month or fraction thereof during which the failure
continues, not exceeding $12,000 in the aggregate.