What is the County Surcharge, when does it start, and how much is the tax?
• The County Surcharge increases the General Excise (GE) tax for transactions on Oahu, and will be used to to pay for Oahu’s mass transit system. • It began on January 1, 2007. • The tax rate is increased by 1/2%, for a total tax rate of 4.5% (for transactions on Oahu). Q2. What is the maximum tax rate I can collect from my customer to cover my General Excise and County Surcharge tax liability? The maximum you can pass on to your customer is 4.712%. However, you are not required by law to pass on these taxes to your customer. Q3. Beginning January 1, 2007 should I keep track of my transactions by the different taxing districts that I’m conducting business in? Yes. Beginning January 1, 2007, 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 revised Forms G-45 and annual G
