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State Authorized Multi-Level Marketing Agreements

State Law

Section 237-9(d) of the Hawaii Revised Statutes allows a company engaged in network marketing, multi-level marketing, or similar business to obtain a single general excise license for all of its direct sellers doing business in Hawaii. The company would then become the tax collection agent responsible for reporting, collecting, and paying over the taxes due under the general excise laws on behalf of its direct sellers who are covered by the tax collection agreement. The tax collection agent's direct sellers shall be deemed to be licensed for Hawaii general excise tax purposes, provided that the licensure shall apply solely to the business activity conducted directly through the marketing arrangement.

If a multi-level marketing company chooses to become a collection agent on behalf of its direct sellers, the company must first enter into a tax collection agreement with the Department of Taxation. If you need assistance, we can answer your question via e-mail, Tax.Technical.Section@hawaii.gov , or by telephone, (808) 587-1577.

The following is a list of those companies whom have entered into an agreement with the State of Hawaii - Department of Taxation.

List of Multi-Level Marketing Agreements as of September 12, 2008

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Applying for a Multi-Level Marketing Agreement

If a company wishes to enter into the agreement with the State of Hawaii, Department of Taxation, they must:

1. Complete and execute the State of Hawaii Basic Business Application (PDF);
2. Send a check for $20.00, drawn on any U.S. bank, made payable to "Hawaii State Tax Collector"; and
3. Complete two original copies of the State of Hawaii Multi-Level Marketing Company Excise Tax Agreement (Word), sign, date and return the originals to us at the following address:
   State of Hawaii
   Department of Taxation, Rules Office
   Multi-Level Marketing Agreement
   P.O. Box 259
   Honolulu, HI 96809-0259

Additional Related Information

• Tax Announcement 1998-14 RE: Application of Act 143, Session Laws of Hawaii 1998, Relating to the Licensing of Direct Sellers
• Tax Facts 96-1 (Revised July 2000) (PDF) General Excise Tax vs. Sales Tax, that explains the fundamental concepts and applicability of Hawaii’s General Excise Tax
• Tax Announcement 2006-15 (PDF) Relating to the General Excise Tax (GET) and County Surcharge Tax (CST) Visibly Passed on to Customers
• Hawaii Revised Statutes, Section 237-9 (PDF)

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