Ron Heller, Attorney and CPA, wrote a great article describing Hawaii's General Excise Tax. Most people don't understand how it works... they just think 4.0 percent or 4.5 percent is much lower than the 8 percent - 9 percent sales tax rates they see in other states. He writes, "In most states, the sales tax covers only the final retail sale of goods - it does not apply to wholesale transactions, nor does it apply to services, rents, interest, commissions, or other forms of income.
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