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What is the general excise tax? Leasehold vs. Fee Simple: The best way to describe Fee Simple is to say that it is the type of ownership that most of you are accustomed to. You purchase property, receive title and its yours or your heirs forever, or until such time that the property is disposed. Leasehold, conversely, is property to which title remains yours for a specified period of time, at the end of which the property reverts to the party that holds title in Fee Simple. Your probable immediate negative reaction to this type of purchase may be erased by a little insight into the reasons for and benefits of conveying this type of title to you. The first reason is that the Fee holder wishes the property to remain in his estate but would like to derive some income from the property. Secondly and predominately, it makes the property affordable. Lets take for example a three-acre parcel of land, oceanfront, and zoned apartment. The market price for the land alone is $4 million. The developer constructs forty condominium apartments of equal size and sells them Leasehold on a seventy-five year lease. The lease payments are fixed for a term of thirty years at which time the lease is renegotiated. The fixed payments are $200 for the first ten years, $250 for the second ten years and $300 for the third ten years. Now compare these monthly payments to the payment that you would make if you had purchased the apartment fee simple. The price would be $100,000 more for each apartment. Your down payment would be at least $20,000 more and you would be financing an additional $80,000, representing an additional monthly payment of over $1,000 depending on the interest rate. This higher down payment and monthly payment could well take the property out of an affordable price range for you. There are tax benefits in purchasing Leasehold properties. However, taxes are unique to the individual and it is suggested that you consult a tax expert.
What is the general excise tax? In lieu of a sales tax, the State of FAQs - General Excise Tax Information Q: I am licensed to do business in Hawaii and want to prepare my General Excise Tax Returns. Is there a list of forms and instructions?A: Yes, please see General Excise and Use Tax. Q: I would like to start a business in Hawaii. What do I need to do?A: Please see: Tax Facts 97-3, Starting a Business - Licenses and Taxes (PDF). Q: What is the fee for a general excise tax license?A: A one-time $20 fee. Q: How can I apply for a general excise license?A: The State of Hawaii Basic Business Application, BB-1 Packet, must be completed and submitted with the one-time $20 license fee. It is recommended that the application be mailed in; however, it can also be applied for in person at any of the district offices. The application form is available on the website. Q: Where do I mail the application for the general excise tax license to?A:
Q: Can I apply for a general excise tax license online?A: Yes, Hawaii Business Express is the quick and easy way to start a business in the state of Hawaii. One simple interface covers all the forms with all the state agencies and partners. For more information, please see the Hawaii Business Express website. Q: Where else can I obtain a general excise tax license?A: One other location where you can apply for a general excise license is at the Business Action Center which is located at 1130 N. Nimitz Highway, Suite A-220. Office hours are 7:45 a.m. to 4:30 p.m., Mondays through Fridays (except State holidays); telephone number is 586-2545. Q: What is Hawaii's sales tax rate?A: Hawaii does not have a sales tax; instead, we have the general excise tax, which is assessed on all business activities. The tax rate is .15% for Insurance Commission, .50% for Wholesaling, Manufacturing, Producing, Wholesale Services, and Use Tax on Imports For Resale, and 4% for all others. For differences between the general excise tax and sales tax, please see Tax Facts 96-1, General Excise vs. Sales Tax. If your business activity is taxed at the 4% rate and is conducting business on Oahu, you are also subject to the .50% Oahu County Surcharge Tax. For more information regarding the Oahu County Surcharge Tax, see County Surcharge - FAQ's. Q: I have misplaced my general excise license. How can I replace it? Is there an additional fee?A: If you have paid the one-time $20 license fee, there will be no additional charge. Duplicate licenses can be issued by calling our Taxpayer Services Branch at (808)587-4242, or toll-free at 1-800-222-3229. E-mail requests will also be accepted by Taxpayer Services, provided that current information is provided, including a telephone number, if there are any questions. You can obtain the forms on this site: http://www6.hawaii.gov/tax/a1_1alphalist.htm What is the transient accommodations tax? The transient accommodations tax commonly called the "TAT", is a tax imposed on certain rental activity in the Hawaii Like the general excise tax, it is a tax levied on gross income. However, it is imposed only on gross rental income derived from the furnishing of accommodations occupied by a transient for less than 180 consecutive days. The tax rate is 9.25%.
Can you explain the HARPTA and FIRPTA tax withholdings? For Sellers who do not live in the State of TRANSACTIONS INVOLVING FOREIGN OR NON-RESIDENT BUYER AND SELLER
Animal Quarantine Information► Updated Advisory (November 9, 2009)Hawaii The State of Hawai`i has ordered mandatory furloughs for all state employees effective October 23, 2009. The two-day per month furlough, combined with previous layoffs and budget restrictions require that the Animal Quarantine inspection operations be reduced for pets arriving at Honolulu International Airport (HIA). Effective December 1, 2009 inspection hours for dog and cats at Honolulu International Airport (HNL) will be between the hours of 8:00 a.m. to 5:00 p.m. daily, including weekends and holidays. This information is particularly important for those who are qualifying their pets for direct release at the airport. Pet owners should be sure to arrange for their flights to arrive by 3:30 p.m. because it may take up to one hour for the airlines to transport a pet to the Airport Animal Quarantine Holding Facility and animals not arriving at the facility by 4:30 p.m. will not be released at the airport that day. Pets arriving in the late afternoon and evening will be held overnight until inspections are completed the following morning. Pet owners who are connecting to neighboring islands should pay particular attention to the change in inspection hours. (An advisory was posted on this website on August 17, 2009 to advise pet owners of the probability of reduced inspection hours.) The Airport Animal Quarantine Holding Facility at HIA will continue to accept pets arriving from airlines at all times of the day. The reduced hours are for inspection operations and airport release. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * The forms and requirements listed below for the 5-Day-or-Less Program and Direct Airport Release have been modified October 2009. Please refer to the updated documents under Hawai`i's Animal Quarantine Law. Checklist for 5-Day-or-Less Program; Checklist Only for Dogs and Cats Located in Hawaii that are Departing and Returning for The 5- Day- or- Less Program; and Checklist for Requesting Direct Airport Release at Kona, Kahului and Lihue Airports * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Contact Info:
► Hawai'i's Animal Quarantine LawHawaii is rabies-free. Hawaii's quarantine law is designed to protect residents and pets from potentially serious health problems associated with the introduction and spread of rabies. All dogs and cats, regardless of age (puppies and kittens included) or purpose, must comply with Hawaiis dog and cat import requirements. Chapter 4-29 Hawaii Administrative Rules, governs the importation of dogs, cats and other carnivores into Hawaii. This law states that dogs and cats meeting specific pre- and post-arrival requirements may qualify for 5-dayor-less quarantine program, which has a provision for direct release at Honolulu International Airport after inspection. (See Checklist For 5-Day-Or-Less Program for details.) Furthermore, the law requires dogs and cats not meeting all of the specific 5-Day-Or-Less program requirements to be quarantined for up to 120 days upon arrival In Hawaii. (See Hawaii Rabies Quarantine Information Brochure for details on 120-day quarantine.) Prohibited Animals: The regulation of animal breeds and species that are permitted to enter Hawaii is under Plant Quarantine Branch jurisdiction and administrative rules. Non-domestic dogs and cats and hybrids such as wolf, wolf cross, Dingo, Bengal, Savannah, etc are prohibited under Plant Quarantine (PQ) law. Refer to Plant Quarantine's animal guidelines for importation. Puppies and Kittens: Due to the minimum amount of time needed to prepare a puppy or kitten to meet the requirements of the 5-Day-Or-Less program, a puppy or kitten will be about 10 months of age by the time the preparations are completed. Puppies and kittens not able to meet all of the requirements for the 5-Day-Or-Less program will be quarantined for 120 days. Hawaii Resident Pets: Owners wishing to leave Hawaii with their pets and return without extended quarantine must meet all requirements listed on the Checklist Only For Resident Dogs And Cats Originating From Hawaii And Returning For The 5-Day-Or-Less Program." The length of the waiting period after a successful rabies blood test is modified and must be completed before leaving Hawaii. See Checklist Only For Resident Dogs And Cats Located in Hawaii that are Departing and Returning to Hawaii under the 5-Day-Or-Less Program for details. Re-Entry Fee Requirements: For pets re-entering Hawaii after completing a Hawaii rabies quarantine program, click here for requirements when a reduced "Re-entry" fee for Direct Airport Release or 5-Day Or-Less quarantine applies. Direct Release on Neighbor Islands: Pets may now qualify for direct release at Kona Airport (Big Island), Kahului Airport (Maui) and Lihue Airport (Kauai). See "Checklist for Requesting Direct Airport Release at Kona, Kahului and Lihue Airports." Pets from Areas Exempted from Rabies Quarantine: For pets arriving from exempt areas follow Checklist for Pets Arriving from British Isles, Australia, Guam and New Zealand [Rev. 11/05] Note for Guam: See FORMS section below for the Affidavit for Export from Guam to Hawaii.
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► Forms
OIE-FAVN Testing Forms - All posted laboratory fees and documents are subject to change by the laboratory without notice.
► OIE-FAVN Test Results
Guide & Service Dogs
If you have questions after reviewing our brochure and forms, please contact us at:
Hawaii Department of Agriculture Can you suggest a 1031 exchange company?
First Hawaiian Bank
Renee P Kaiama Phone (808)873-3713 Cell (808)283-3000 rkaiama@mauiisle.net Home Street Bank Elite Lending Office: Cell: Fax: Can you recommend a good home inspector? 3 good Home Inspectors are: Craig Smith 808-572-3009 Beau Petrone A Sound Mind Home Inspection 808-870-0593 Robert Miskae Can you recommend an insurance agent? Here is a list of a few insurance carriers on Maui: State Farm # 808-877-5273 Hawaii Insurance Consultants # 1-877-543-9789 Servco Insurance Services # 808-877-5053 Royal Insurance Agency # 808-244-7245 Island Insurance Companies # 1-888-312-2525 Wessel & Associates # 808-986-1400 Atlas Insurance Agency # 1-888-311-2525 AIG Hawaii # 808-244-3131 Allstate Insurance # 800-255-7828
Some good Vacation Rental Websites are: www.Perfectplaces.com | |||||