Tips for Completing the Hawaii Tax Applications

As of January 1, 2007 Hawaii is officially operating under the permit law for direct wine shipments. This means that wineries can no longer ship under the reciprocity law and must have an approved direct shipper permit for each county. However, wineries must have a General Excise Tax License (similar to sales tax) and a liquor license from Hawaii’s Department of Taxation. I have outlined some steps that will hopefully simplify the application process and as always the forms are available on the Wine Institute website.

Wineries must complete the form BB-1 02, NOT BB-1 UC-1. The forms are almost identical except that UC-1 is for businesses that have employees in the state of Hawaii. Lynn confirmed that wineries must select General Excise when completing the application. She also thinks wineries should select Liquor on the same application. The General Excise Application fee is $20.00 and the Liquor Application fee is $2.50.

Wineries will be mailed the Combined Monthly Return of Liquor Tax and Report of Wine Gallons and Dollar Volume of Taxable Sales or Uses form (Form M-18) to complete each month and the General Excise Forms once their application for General Excise/Liquor is approved.

Question 6 on the application is the date business began in Hawaii. Wineries can put the date they are completing the application or the date they expect to be legally approved to ship. However, if a winery lists 1/10/06 on the application they will have to include January on their initial tax report. The excise tax reporting forms will be mailed to wineries in booklet form. Wineries can select to pay their excise taxes monthly, quarterly or semi-annually.

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