(2/20/2014) Tom Named Interim President of Tax Foundation of Hawaii
In late December 2013, the Tax Foundation of Hawaii suffered a great loss when its long-time President, Lowell L. Kalapa, suddenly passed away. In late January, I was named Interim President to takie the helm of the Foundation through the Hawaii Legislature's session now in progress, in order to give its Board time to conduct a proper search for a new chief executive. More at News and Updates.
Hello and welcome to Aloha State Tax! This is the home page of Thomas Yamachika LLLC, a very small law firm (population: me) with emphasis on taxes imposed by the State of Hawaii, the Aloha State.
Why care about state tax? One thing that comes along with doing business in Hawaii is the Hawaii General Excise Tax, or GET. Although it is imposed at a nominal rate of 4%, it produces nearly half of all general fund revenues for the Hawaii state government. This is because the tax is imposed on virtually all economic activity, and has the broadest reach in the United States. It reaches services, interest, royalties, and other things that most folks would never dream are taxable. And, because it's a tax on gross receipts, it allows very few deductions. Many people think it's simple...but it really isn't.
Most people care about federal income tax because the rate is higher. But what if a business is experiencing a current loss? GET still needs to be paid. What if a business is experiencing current income that is offset by losses from prior years? GET still needs to be paid, and maybe state income tax does too because the state rules are different.
What can be done about it? "Knowledge is power." "To play the game, you have to know the rules." Tom has worked for the Hawaii Department of Taxation and then spent 16 years in the accounting firm world. We can help!